It is a communal savings plan where you get your investment in a lump sum. Also known as the “Mandala Game,” “Blessing Circle,” “Infinity Loom,” “Giving Circle,” and by other names, the scam is a chain letter-type of pyramid scheme. Pyramid Scheme The flower program (also known as the “Friends and Family Share Gifting”) is a pyramid scheme as it provides recurring dividends/profits totaling $4,000/month with a $500 investment. You simply get the same money you put into it. When this happens the top few members in the earliest rounds of the pyramid will have received a large payout, while the vast majority at the lower levels/later rounds will lose all the money they have already contributed, as well as the sense of community that has been formed by the scheme. In which countries in the world gambling is prohibited? Yes, it is. A pyramid scheme is psychological; playing on people’s greed and fear of missing good deals. Briscoe said she was assured that once she got to the so-called “water level” on the pyramid-scheme hierarchy, the money she would receive was a … It is a communal savings plan where you get your investment in a lump sum. However, you're more likely to end up losing your money AND your friends. Pyramid-scheme adjacent, sure, but technically not pyramid schemes. Everyone breaks the law in some shape, form, or fashion. In 2017 bitcoin and other cryptocurrencies reached an all time high. FCNB advises that gifting circles, even those marketed as charitable ventures, are pyramid schemes. How to recognize a dubious online casino? Where to gamble for real money in Holland online casino’s? Bello was the "ringleader and principal promoter" of the alleged pyramid scheme, according to prosecutors, and made at least $400,000 … Therefore, a Ponzi scheme is centralized as opposed to pyramid schemes, which continue feeding money up. And if the entire operation becomes a bust, you may be forced to pay taxes on the money you’ve earned in addition to legal fees. What’s laughable about this claim is any illegal activity is “tax-free” until you’re caught! It is true that the IRS allows you to receive up to $15,000/person in financial gifts without any tax obligations, but again, because the Flower-sou-sou-investment-thing is illegal, this money is indeed taxable. While pyramid schemes go by various names, they said, the “Blessing Loom” is prevalent now and participants are asked to wire $100 … Cookies Policy You will have to discern whether or not you’re willing to take the risk. SuSu Money scheme prompts you to deposit a specific amount of money within the specified time ( either monthly or weekly or bi-weekly) into their account. While versions vary slightly, the one we’re hearing about most promises that you’ll collect $800 for an investment of $100 and, at the same time, help bring good fortune to someone else by recruiting them to join. Noting that bingo and horse racing used to be illegal, promoters, who hope to eventually circumvent pyramid laws, have drafted a proposal that would add a subsection to the law that would read: "A plan or operation is not a pyramid promotional scheme if each participant in the plan or operation has signed a document stating that all the money the participant contributes … Do Not Sell My Info, TheBlackInvestor.com a Management 24, LLC brand. According to the Gaming Authority ‘Moneyflower’ is a pyramid scheme. Sergei Mavrodi leaves prison in May 2007. Your email address will not be published. If this is not the case, a game is prohibited. A gifting circle is a pyramid scheme that asks members to buy-in with $5,000+ offering a $40,000 payout when they recruit friends. How to use Bitcoins in the online casino industry? It’s no secret: America is in a crisis. Terms & Conditions And because of this, it is illegal (at the federal and state levels). How is this possible? First off cash gifting as a business opportunity is illegal. The flower program (also known as the “Friends and Family Share Gifting”) is a pyramid scheme as it provides recurring dividends/profits totaling $4,000/month with a $500 investment. There’s a lot of uncertainty and people are scrambling to find solutions to their growing money problems. This requirement makes the program a pyramid scheme because failure to recruit two people will cause the entire system to collapse. In the Netherlands all games of chance must have a license. Claim: This program isn’t a pyramid; it’s a circle with money flowing between the members. Participating in a pyramid scheme is illegal, regardless of whether or not a person makes money. MMM, the pyramid scheme Mavrodi founded, defrauded more than a million Russians in the 1990s. Privacy Policy Claim: No laws are broken if your gift is in cash and not sent through the US mail service. According to the government-owned website Investor.gov, in the classic pyramid scheme, participants attempt to make money solely by recruiting new participants, usually where: So while the Flower-sou-sou-investment-thing is not being promoted as a multi-level marketing program, it checks all of the boxes as it relates to how the government defines a pyramid scheme. Pyramid schemes promise quick profits for recruiting others. For example, in a typical Sou-Sou, Flower or similar Pyramid Schemes, participants are often promised if they put up $100 in some cases, or $500 in others, after a month or two passes they would receive a return eight times their initial cash contribution to the scheme. The promoter promises a high return in a short period of time; No genuine product or service is actually sold; and. A pyramid scheme is a fraudulent investment strategy, deemed illegal in the United States. How to Recognize a Pyramid Scheme. Sou Sou (SuSu) SCAM. This is not the same as gifting money to a friend or family member for their birthday etc. Meet the D.C. Disclaimer Keep visiting TheBlackInvestor.com to learn more. Avoid programs that focus more on recruitment than the sale of a product or service to an end consumer. Could i play without account in a casino? Sounds great, right? The problem is: recruiting people is easier said than done. The Flower-sou-sou-investment-thing claims that the financial “gifts” people receive as a result of being in the community are tax-free. A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products.As recruiting multiplies, recruiting becomes quickly impossible, and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal. So yes, it is possible to make money from cash-gifting schemes. There are a number of LEGAL ways you can earn a sizable return on your $500 investment. It was named The Gifting Table. On top of having to protect ourselves from the deadly grip of a global pandemic — that is devastating our community at alarming rates — we also have to concern ourselves with violent acts of discrimination that have claimed one too many innocent Black lives during an already stressful time. It is like a rotating club, where all the customers or the created group of customers deposit a certain amount of money within the specified time or monthly and it builds the total fund required as per the plan. It’s not uncommon for scammers and con artists to prey on the vulnerability of people during a critical time of need. But your friends or acquaintances sharing this probably don't realize it's the classic definition of a pyramid scheme, which the Randolph County Sheriff Greg Seabolt said is illegal in North Carolina. What are the best casino’s with ideal payment? Why Ethereum is a great payment method in an online casino. Unfortunately, this is the perfect climate for scammers and con artists which has led to this article. How to create your own account at an online casino? It's the latest in a … Warning from Ksa: ‘Moneyflower is a pyramid scheme’. As in Ponzi schemes, the money collected from newer victims of pyramid schemes is paid to earlier victims to provide a veneer of legitimacy. "When people play this game and they get took for a lot of money… Native Who Is Taking Black Women to Africa, Here’s How Black-Owned Businesses Can Keep Sales Growing Beyond the Trend, This Black-Owned Beauty Supply Store Is BOOMING Amid COVID-19 — Now You Can Own One, Too, Here’s What Happened When Facebook Shutdown This Popular Black Influencer…, It’s Never Too Late Or Too Soon to Make Money Trading Stock Options, Black Stock Options Traders Discuss the Importance of Mindset For Success, Trading Stock Options Helped This Black Man Save His Wife’s Life. Scammers prey on the desire to make a lot of money with very little effort. The Flower-sou-sou-investment-thing is structured very similar to a pyramid scheme created and ran by wealthy White women in CT which ended with some people serving federal prison time and/or paying steep legal and tax fees. According to the Federal Trade Commission, pyramid schemes “promise consumers or investors large profits based primarily on recruiting others to join their program, not based on profits from any real investment or real sale of goods to the public.” One of the best ways to avoid falling into the trap of some of these famous pyramid schemes is to recognize the key attributes. The 'Loom' craze has resurfaced on Facebook in Australia and New Zealand, promising people a payment of $2400, eight times the initial $300 … The pyramid scheme has been appearing in newsfeeds and circulating online over the past week, targeting people who may never have heard of them. Dutch casinos remain closed through 2 March 2021, State Lottery top prize 10 January falls in Haarlemmermeer, Five star casino Oosterhout and Den Bosch, Krijco casino Den Bosch Harderwijk and Utrecht. The "Loom" scheme — an international online scam targeting young people through social media — is on the rise in Australia and can lead … about Dutch casinos remain closed through 2 March 2021, about State Lottery top prize 10 January falls in Haarlemmermeer, Mobile Casino Netherlands brings the casino to your own place. According to the government-owned website Investor.gov, the IRS allows you to receive up to $15,000/person in financial gifts without any tax obligations, a pyramid scheme created and ran by wealthy White women in CT which ended with some people serving federal prison time and/or paying steep legal and tax fees, Entrepreneurs, Hustlers, And Everything In-Between: Here’s Why You’re Losing Credibility. But remember, pyramid schemes are … The Underground Railroad is an MLM gifting scheme, which incorporates elements of both pyramid and Ponzi schemes. What is the payout percentage of a videoslot? Simply put, that level of growth is impossible to sustain and pyramid schemes therefore always collapse. With that being said, when America is sick, Black America is on its deathbed. This system doesn’t result in anybody makeing a … Fact: Gifting clubs all meet the definition of an illegal pyramid scheme despite jargon that may be used to disguise the true nature of the program. Once people stop … Being unsustainable, the numbers keep climbing until investors dry up and the pyramid crumbles. It is agonizing and becomes a job. This is a betting game in which the majority of the participants lose their deposited money, because the pond dries up to potential participants. If you’re Black American, have a decent network of contacts, and frequent social media groups, you’ve probably heard of this Flower-sou-sou-investment-thing that some of your friends and family members are probably encouraging you to join. Is Cash Gifting a Pyramid Scheme? Read these five warning signs. This is not a pyramid scheme, as everyone is paying the money back. The main characteristic of a pyramid scheme is that participants only make money by recruiting more members. Multilevel marketing is the system made famous by companies like Herbalife. It relies on recruiting new individuals to keep the scam afloat. The primary emphasis is on recruiting new participants. Where could i play in a Belgium Live casino? The “pot” of money goes from person to person in the group. That’s why it’s important to exercise discernment when being approached about opportunities to make money during a crisis. The trouble is that this is a pyramid scheme. There are many different kinds of pyramid schemes, but the two most basic are product-based and so-called naked pyramid schemes. See more money scam pictures. Log in. The Black Investor: Transform Your Mind Into a Gold Mine. And that’s why traditional sou sous are LEGAL. COVID-19 has exposed the country’s vulnerabilities and forced everyone to reassess whether or not it’s the powerhouse country it has purported itself to be. A pyramid scheme is a sketchy and unsustainable business model, where a few top-level members recruit newer members, who pay upfront costs up the chain, to those who enrolled them. Here’s how to discern the difference between a traditional sou sou and a pyramid scheme: A traditional sou sou does not yield dividends/profits. Africa Is Rising… Will Black America Join the Wave Before It’s Too Late? 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