What to Do If You Are a Victim of a Pyramid Scheme
Anybody can become a victim of a pyramid scheme. Pyramid schemes are rampant in the United States and can be found offered over the internet, over the telephone, and in print publications. You might even become involved with a pyramid scheme through word of mouth from a friend or relative.
Pyramid schemes are illegal in the United States and in many other countries across the world. The most current law regarding pyramid schemes in the United States is the 2007 FTC Franchise Rule.
Sometimes, these kind of schemes are hidden behind other names, such as multi-level marketing. If you become a victim of this type of scheme or any other scam, it is important that you file a claim with the United States Securities Exchange Commission.These claims are handled by the SEC and may be investigated by the Federal Bureau of Investigation (FBI). Contact an experienced fraud attorney for help and legal advice with your claim.
What is a Pyramid Scheme?
Pyramid schemes are a form of franchise fraud that work by constantly bringing in money through new victims. The leader of the pyramid scheme encourages individuals to pay a fee and join the organization. Each member is then told to recruit new members, whose entry fees go to their direct recruiters as well as the director, creating the next link in a payment chain that could continue for dozens of levels. Members are lured in with the promise of an easy opportunity to make money with the organization, usually by selling goods or providing a service, but the real money comes in through their recruitment of new members.
This is why they are known as pyramid schemes – sketching such an organization’s profit flow would result in an image of a triangle, with one director at the top taking in money from all the levels beneath, each level larger than the one above it. These schemes rely on growth to remain profitable and if a pyramid scheme cannot bring in new members, it cannot survive.
If You Are A Victim
Keep all documentation of the scam and your lost money. This may include cash receipts, voided checks, solicitation letters or emails, bank statements, and receipts for cash or money orders. You will need these to show the amount of money you lost and the party responsible for the scheme.
The next step is contact an experienced fraud attorney to build your claim. You may be able to recover the money you lost to the pyramid scheme.
Fraud Attorneys in Winter Park
Contact Hornsby Law Group at 407-599-3800 to discuss your claim with one of our firm’s experienced Florida fraud attorneys. If you have lost money to a pyramid scheme or any other type of fraud, you deserve to have your money returned. Do not wait to contact our firm and begin working on your case – being proactive is key when you have been a victim of a fraud or other criminal act.