A pyramid scheme is an illegal business model based on the promise of payments or services in exchange for recruitment. A typical pyramid scheme is comprised of a few individuals at the top who start out by recruiting members or participants to support their organization. They provide an incentive for those members to recruit more members, who recruit more members, and so on.
Those who join are generally charged membership dues of some kind and are offered a share of the money collected from each member they recruit. Members essentially invest their own time and money in building the business as a majority of the income is funneled to those at the top of the pyramid.
In most cases, no legitimate product is actually sold. These illegal business models violate state criminal and civil laws, and those operating the business are subject to serious fines and possible arrest.
While they can surface in many forms, pyramid schemes are often disguised as motivational companies, investment organizations, buying clubs, gifting clubs and mail order operations.
Many honest and hardworking people fall victim to pyramid schemes. Unfortunately, their involvement can often turn into a costly investment with no return. By working with an experienced pyramid scheme attorney, you will have the best chance at recovering your losses. Contact the Bourassa Law Group to learn more about how we can help.