Pyramid schemes. Scam or not scam?

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Wannabe Baiter Joined: 30 Jun 2007 Posts: 82

Just last week a friend talked me into an investment that i thought was and is still a pyramid scheme sort of, but i just bought the least option that would be risk free in about 10 working days.

I dont want to post the the link to the website here as I dont know if its allowed but common sense tells me that money dont grow on trees and they have almost proved me wrong .

This website says the have stakes in Las vegas sands and so many other realistic looking well known ventures.

Just want to know what you guys thinks of it.after 5 days , i think i got back half of what I put in there and the money goes into my account in one of the biggest banks in thailand every working day.I can bet an arm the entire bank knows what going on/down.

If i get the mods permission I will post the link so anyblody can visit the site and say what he/she thinks.

Mod Note: Thread moved to Miscellaneous Scams from Main SB. [BB]

Posted: Mon Aug 13, 2007 5:07 am

Well... you know what they say about things that look like ducks and quack like ducks....

Posted: Mon Aug 13, 2007 5:12 am

onyenekwu wrote:

... investment ... pyramid scheme...

Using these words in a sentence is a sure fire way of ensuring no-one does it. Post the link. I must advise that anyone visiting this link, please remember, if it means 'get rich quick', it's rubbish.

We'll bash the validity of the returns and it's authenticity after we see it.

Wannabe Baiter Joined: 30 Jun 2007 Posts: 82

www.colonyinvest.net

Disclaimer. i dont represent the above company but i got 500 bucks in their backyard garden

Another thing the sites becomes active for members after 3am NY time with the updates on earnings.

I want to hear what the views of the Elites on this, i ll be drinking with the clowns this evening.

Posted: Mon Aug 13, 2007 5:24 am

Googled; found a thread on talkgold, found a thread on MMG, found many references to this as a scam... all on page one.
I'll be interested to see what our cattyshaq cross members think of this.... well, ok, I KNOW what they will think of this...

Posted: Mon Aug 13, 2007 5:25 am

Pyramid schemes make you money if you're in there early, or can convince many many other people to join. However, they are illegal to operate (though I'm not sure if that means they're illegal to participate in).

The site looks as though it's been constructed in a fairly professional manner. Not sure what's up with the Coca-Cola cow though.

Posted: Mon Aug 13, 2007 5:27 am

Here is a link for those who just PM'd me on what is a pyramid scheme and HYIP (High Yield Investment Program) / Ponzi Schemes.. etc

http://en.wikipedia.org/wiki/High_Yield_Investment_Program

http://en.wikipedia.org/wiki/Ponzi_scam

When I first saw the name of the site, my baiter's brain read, 'Con Invest'. There are legitimate companies that do manage long and short term investment portfolios on markets that do provide good returns after a few years.

As for the reputation of this website/company, I wouldn't know. It would be better asking for their last financial year corporate plan and returns. I would also do some local research for yourself.

Posted: Mon Aug 13, 2007 5:34 am

Josh wrote:

Not sure what's up with the Coca-Cola cow though.

They've discovered the Cola-Cola Company's dirty secret! Laughing

The investor testimonials look like they've been run through the translator a couple of times too, even though one of them claims to be an American. The audio files don't seem to play either....

Wannabe Baiter Joined: 30 Jun 2007 Posts: 82

There are lots of features you cant get to if you are not a member.

Like pointed out earlier you have to be in early to reap a bounty.I also tried to find how long thet have operated but not very specific.

Posted: Mon Aug 13, 2007 6:01 am

Note: This domain was just registered in March of this year, and has changed servers 5 times. This is bad. Looks like the same people own colonyinvest.com, which is now down. That domain was also registered in March of this year, and has 4 server changes in its record.

Interestingly, the registrant has changed names, from Seik Peng Tan to Peter Fernandez, although the physical address remains the same, 4057 Clipper Court Fremont, Ca. A reverse search on that address does not list this so-called company, BUT does show a company called Ibi Synergy (which apparently makes condoms), that just happens to have the same phone number as the one used to register colonyinvest.net. Hmmm... condoms and high yield investments... must be safe, right?

I also find it interesting that Peter Fernandez of Fremont California registers websites with the email [email protected]

Not quite a Newb Joined: 10 Aug 2007 Posts: 34

Josh wrote:

Pyramid schemes make you money if you're in there early, or can convince many many other people to join.

Also lot of draws and competitions that are free to participate work on same principle. Their aim is marketing and collecting valid e-mail addresses. Annoying things, and there is lot of them going around, even from quite reputable companies.

Posted: Mon Aug 13, 2007 6:14 am

onyenekwu wrote:

Like pointed out earlier you have to be in early to reap a bounty.

Do you know where that "bounty" comes from, Onyenekwu? Any money you get in a HYIP comes from those people who either you or another "member" get to join in. There is no "investment", ALL of the money comes from the people who sign up. Those who get in early get a cut of the "investments" made by those who come in later... better known as the people that lose everything when the scammers fold tent and disappear. This is why this type of thing is illegal.

Not quite a Newb Joined: 10 Aug 2007 Posts: 34

And those that get in early are typically professional criminals. They vanish with the money when the scheme is about to collaps, and set up new immediately.

I have been an position where i was able to accidentally hear an long recruitment-talk of well known pyramid-scheme pro in my country (no, i was not there to be recruited - just overheard in public place). Some of those guys would sell their mother for few bucks.

** ACCOUNT CLOSED ** Joined: 15 Apr 2007 Posts: 766

SlayerFaith wrote:

Hmmm... condoms and high yield investments... must be safe, right?

Protecting your investment?

The creator of the very useful QuackWatch has created a site for investigating Multi-Level Marketing: MLMWatch.

--J.D.

Posted: Mon Aug 13, 2007 6:44 am

http://www.therichkids.com/

You get 7.50 (half of the sign up fee) when someone buys membership under your referral link, and gives you some crap on click bank affiliate advertising.

My friend keeps telling me how good it is, blah blah blah. I ask him how much he's made, 7.50. That's from one person he got to sign up after he spend about 25.00 on advertising it.

It doesn't look like a HYIP or Ponzi...

Not quite a Newb Joined: 10 Aug 2007 Posts: 34

Quote:

working just 15-30 minutes a day!

Or like in here: "passive income", those are the keywords - money for nothing... and there will always be suckers.

They don't use 100% Risky Free !! much because the sums are often quite a lot smaller, but smaller sums are compensated by larger number of potential victims.

Posted: Mon Aug 13, 2007 7:29 am

(old-guy voice) I think this goes to prove a valid point kids!

While all 419 letters are scams, not all scams are 419's. Many scams are so slick they don't even fit the definition of a scam. At least legally and not yet anyway. (no jokes about insurance companies, bank service charges or long-distance plans please) From the get-rich-quick CD's to the you-can't-lose investments to the lend-me-a-twenty, there's always someone out there waiting to "chop you dolla".

Amway (just a famous example) was declared to be a pyramid scheme, so they've changed their name and added a few twists to their policy and - poof: legitimate business again! And they're not alone by any means. Note that I have no problem with Amway, but they're the most shining example of the pyramid.

Then there's the fact that many of us (myself included) often make the mistake of confusing law with justice. Many of these operations are "100% legitimate" in the eyes of the law, at least in their jurisdictions.

** ACCOUNT CLOSED ** Joined: 15 Apr 2007 Posts: 766

^^^^Well stated.

If it was this easy to make money, none of us would be here . . . too busy trying to figure out the feng shui of the new room we are putting on the mansion. . . .

--J.D.

Master Baiter Joined: 19 Apr 2007 Posts: 108

I have been an advisor in professional practice for 30+ years, and have seen many clients look into various schemes as possible sources of income...fortunately few, if any, have fallen for them. One thing which I have learned from clients' experiences is that there is little or no serious money which can be made without work of some sort! (If there were, I would definitely not be at my desk right now!)

Ignoring the obvious pyramid schemes and get-rich-quick scams, there are some entirely reputable franchise operations available. But I would strongly urge anyone considering entering into one to take qualified professional advice, financial and legal, to be very sceptical of all claims, and don't expect a quick buck. At the end of the day, the most reputable franchisors are still in it, primarilly. for their own profit and benefit.

** ACCOUNT CLOSED ** Joined: 15 Apr 2007 Posts: 766

^^^^^So I cannot just get up every morning and pull a check out of my mailbox like that fat guy on television?

ARE YOU TELLING ME EARLY MORNING TELEVISION LIES?!!1!!

--J.D.

P.S. Welcome to the forums.

P.P.S. Two drink minimum. . . .

Posted: Mon Aug 13, 2007 11:47 am

I can't believe that anyone still thinks that getting involved with a pyramid scheme, no matter how dressed up as someting 'different' or 'legitimate' is a good idea.

PS I heart Losst Jedi's avatar Very Happy

Posted: Mon Aug 13, 2007 11:52 am

The two most important sayings I ever learned:

1) If it sounds too good to be true then it probably is

2) There's no such a thing as a free lunch

If you remember those two saying you'll always be fine. I had to talk an ex-girlfriend out of getting involved with a Pyramid Scheme last year. It wasn't easy.

Posted: Mon Aug 13, 2007 4:20 pm

Massive Failure Rates Debunk MLM Income Claims: 99% of MLM Recruits Never Earn a Profit from Pyramid Scheme Alert website at http://www.pyramidschemealert.org/PSAMain/news/MythofIncomeReport.html

(Canada) Competition Bureau - http://www.competitionbureau.gc.ca/

Consumer Awareness Institute - http://www.mlm-thetruth.com/index.html

Direct Selling Association - http://www.dsa.org/
Pyramid Schemes http://www.dsa.org/aboutselling/consumer/index.cfm?fuseaction=pyramid

Federal Trade Commission (FTC) - http://www.ftc.gov/
"PYRAMID SCHEMES" http://www.ftc.gov/speeches/other/dvimf16.shtm - by Debra A. Valentine, General Counsel for the U. S. Federal Trade Commission

MLMSurvivor.com http://www.mlmsurvivor.com/
Information and Web Resources for Survivors of MLM Abuse and Deception

National Fraud Information Center - http://www.fraud.org/

New York State Attorney General - http://www.oag.state.ny.us/
Don't Get Caught in a Pyramid Scheme

Pyramid Scheme Alert - http://www.pyramidschemealert.org/
A Proactive Guide for Consumers, Regulators, and Consumer Advocates
Types of Pyramid Schemes
Twelve Tests for Evaluating a Network Marketing "Opportunity" - PDF file
When Should an MLM Be Considered an Illegal Pyramid Scheme? PDF file

Royal Canadian Mounted Police (RCMP) - http://www.rcmp-grc.gc.ca/
Reporting Scams and Frauds - FAQ's
Pyramid Schemes http://www.rcmp-grc.gc.ca/scams/pyramid_e.htm
Scams - http://www.rcmp-grc.gc.ca/scams/index_e.htm

Oregon Department of Justice - http://www.doj.state.or.us/
Suspected Pyramid Schemes - http://www.doj.state.or.us/finfraud/pyramids.shtml

SCAMwatch (Astraulia) - http://www.scamwatch.gov.au/
SCAMwatch is a website run by the Australian Competition & Consumer Commission (ACCC). The aim of SCAMwatch is to provide information to consumers and small business about how to recognise, avoid and report scams.

U.S. Securities and Exchange Commission (SEC) - http://www.sec.gov/
"Ponzi" Schemes - http://www.sec.gov/answers/ponzi.htm
Pyramid Schemes - http://www.sec.gov/answers/pyramid.htm

Utah Division of Consumer Protection - http://www.dcp.utah.gov/
[url=http://www.dcp.utah.gov/education/pyramid.html]Pyramid Schemes http://www.dcp.utah.gov/education/pyramid.html

Posted: Tue Aug 14, 2007 2:24 am

Pyramid scams are illegal in most of the world, and you can be prosecuted for wire fraud.

If not, at the least you'll be humiliated on the MMF Hall of Humiliation Smile

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