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Old 04-25-2010, 07:43 PM  
DVTimes
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Join Date: Jun 2003
Location: UK
Posts: 31,565
http://www.crimes-of-persuasion.com/...d/pyramids.htm

A business venture that meets all three of these descriptions is an illegal pyramid:
You must make an investment to get the right to recruit others into the program...and

When you recruit another person into the program, you receive what the law calls "consideration." That usually means money, but can be anything of value...and

Your new recruits must make an investment to get the right to recruit, and they receive "consideration" for getting others to join.
An investment includes any money paid to enter the venture. Though it may be called a "membership fee" or "bookkeeping charge," the law still considers it to be an investment. And an inventory of products you must buy to re-sell is also considered to be an investment. Giving of your time or talents, or buying demonstration samples at cost is not considered to be an investment under the law.
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