AIRPLANE AND GIFTING PYRAMID SCHEMES

These are the classic Pyramid Scheme Scams that filled up rooms of excited people that “bought” a fictitious seat on an airplane. They were hot in the 1970’s and rebirths in terms of Gifting Clubs show their ugly head now. There is some history to show that the origin was the “Train Game” from the 1920’s. The idea is you buy your way onto an airplane as a passenger. As you and others bring money in the person at the top the “Pilot” cashes out and leaves the airplane. Then the room full of people splits and everyone moves up a level. You will see this played for amounts from $100 to $10,000 to get a seat as a new passenger. Some cycle you join a $100 room or panel and when you cash out with your money ($3200 from the New Passenger) you “Cycle” and become a New Passenger in a $3000 dollar “room” (or plane) and cash out with $36,000.

When the room splits the Co-Pilot and Navigator both graduate to Pilots. Everyone moves up a level leaving the New Passenger row empty. The entire group starts recruiting new passengers.

There are about 3 or 4 variations of this being practiced today. The common term today for a room is “Panel.” I recently saw a Pyramid Scheme on the Internet that was automated -- real time live! As new participants were recruited they showed up on the website. As the room split it showed you where you were in the new room. The people who programmed this were only made aware that it was illegal when their credit card processor cut them off and escrowed their money! The card processor also turned them in for running a Pyramid Scheme Scam.

Normally Pyramid Schemes run on pure money like the Internet one. However offshore trusts, debit cards, tax evasion training, get rich quick training, secrets of how the rich make money and a range of other shaky products and services are used to throw up a smoke screen and suck in the unsophisticated.
One variation with a shaky offshore trust ran almost 8 years. It was shut down by the Attorney General in Florida in about 1997. Later the Pyramid Scheme moved itself offshore where it still pulled in suckers until 2003.

Do a search on Pyramid Scheme Gifting on the MLM WatchDog (www.mlmwatchdog.com). You will find a listing of Pyramid Scheme Gifting arrests with District Attorneys and Sheriffs leading the charge. That is great because the last people in the Pyramid Scheme lose $5000! Remember our question about Pyramid Schemes, could the last person in make money? In this case NEVER!