MLM PRESS ROOM
|June 7, 1999
Pyramid Victims Nailed ---
According to the Los Angeles Times, three victims who lost money in a major pyramid scheme that was busted in Hollywood last month, have been charged with operating their own scam in Ventura County. Their pyramid program, "Go-4-Success", required investors to put up $2000 with the chance of making thousands of dollars on a weekly or monthly basis if enough other investors participated.
After receiving a tip, detectives posed as potential investors and arrested the trio. They have been charged with operating an "endless chain" which is a felony. The suspects claim theirs was a legal business because investors received a camera, travel vouchers, and a telephone calling card. Sheriffs deputies explain that the shceme is illegal because it requires an endless stream of investors.
The Times article says that the three men allegedly contrived their plan after they had invested $6,000 in the Family and Friends Social Club, a huge pyramid scheme that ended in a police raid. See related article from April 27, 1999.
Original Source: Los Angeles Times, June 7, 1999