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  #1  
Old 11-01-2008, 09:04 AM
SkyWeb SkyWeb is offline
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Cash Gifting: Are There Any Winners?

Though I am not involved cash gifting, and have reviewed the pros and cons of cg on this and other sites via the search engines and forums, I understand the views and opinions of both those in opposition and supporters of cash gifting, particularly in reference to the legality.

I have noticed various individuals making it their purpose to expose cg as an illegal activity, and I have viewed the court docs pertaining to the shut down of several cg groups and individuals who promoted them, as evidence that only the creators of the cash gifting programs come out on top, and not those who promote it or at least very few who do.

However, there are a few currently popular cg programs that have been around for over 5 years.

It would be good to see which individuals have been prosecuted and convicted for operating and promoting one of the current programs given the length of time they have been in existence.

Havenít there also been any individuals who promoted cg activities and have won their cases in court?

Wouldnít that also be public information?

Or is that not a popular subject or topic to publish?

Have there only been losers?

I can see why cash gifting would be discouraged since there are those who operate unethically within the system, as there are in just about any other activity.

But I am also aware that cash gifting would be discouraged by state and government authorities since cash gifts aren't as traceable as say an activity involving a business transaction which is obligated by law to keep records of all transactions and to pay a fair share of the taxes.

I can also see why it may not be popular among companies who rely on employees to stay in business. Meaning many individuals could easily participate in cash gifting and may quite possibly refuse to continue working as an employee or pay any taxes.

Are there any winners besides the creators of cash gifting programs who have prevailed in court or have there only been losers?


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  #2  
Old 11-01-2008, 02:23 PM
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BorisZ BorisZ is offline
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Re: Cash Gifting: Are There Any Winners?

Quote:
Originally Posted by SkyWeb View Post
here are a few currently popular cg programs that have been around for over 5 years.
Really? I am not away of such longevity. Some scammers do continue to scam for more than 5 years, but they change websites/names a lot.

Quote:
Originally Posted by SkyWeb View Post
But I am also aware that cash gifting would be discouraged by state and government authorities since cash gifts aren't as traceable as say an activity involving a business transaction which is obligated by law to keep records of all transactions and to pay a fair share of the taxes.
Yeah, you found the reason. Or maybe the reason that there are laws against "cash shuffling" where only the most criminal element thrive. Illegal is illegal, regardless how you are murking the waters.




Last edited by BorisZ : 11-01-2008 at 02:29 PM.
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  #3  
Old 11-01-2008, 02:52 PM
ProfHenryHiggins ProfHenryHiggins is offline
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Re: Cash Gifting: Are There Any Winners?

I have yet to find any cases where someone was actually brought to trial for cash gifting and won against the charges, Skyweb.

Also, the illegality of cash gifting is not based on government disliking not being able to trace the monies in motion. Try looking up the events in Denver, CO in 1935, when the money chain letters first appeared. That was "cash gifting" 10 cents at a time, and caused hundreds of milions of dollars in economic damage before the fad died out in roughly 75-90 days.

I might also remind people of this warning, issued last month by the Attorney General in Michigan:

Quote:
Cash Gifting Schemes 10/2008

CONSUMER ALERT



MIKE COX

ATTORNEY GENERAL


The Attorney General provides Consumer Alerts to inform the public of unfair, misleading, or deceptive business practices, and to provide information and guidance on other issues of concern.



CASH GIFTING SCHEMES



Local police departments and the Attorney General's Office have noticed a recent surge in inquiries regarding cash gifting schemes. These schemes are presented in an endless variety of ways -- including schemes targeting NASCAR fans, or "socially conscious women."



No matter how these schemes are presented, the bottom line is the same for all -- cash gifting schemes are illegal in Michigan. This consumer alert will provide Michigan consumers with information on how to spot illegal cash gifting scams, and what to do if they believe one of these scams is operating in Michigan.



PYRAMID SCHEMES ARE ILLEGAL IN MICHIGAN



Section 28 of the Michigan Franchise Investment Law (MCL 445.1501 et seq.) makes pyramids illegal in Michigan. The statute reads in part:



[a] person may not offer or sell any form of participation in a pyramid or chain promotion. A pyramid or chain promotion is any plan or scheme or device by which (a) a participant gives a valuable consideration for the opportunity to receive compensation or things of value in return for inducing other persons to become participants in the program or (b) a participant is to receive compensation when a person introduced by the participant introduces one or more additional persons into participation in the plan, each of whom receives the same or similar right, privilege, license, chance, or opportunity.



Essentially, a pyramid is a scheme in which participants receive compensation for recruiting other participants.



Violations of Section 28 of the Michigan Franchise Investment Law are a felony, punishable by a fine of up to $10,000 or seven years in prison.



Multi-Level marketing plans vs. Pyramid schemes -- what Is the difference?



Multi-level marketing plans typically involve a parent company that sells products to consumers through independent sales people. Generally, independent sales people do not receive a salary -- rather, they are compensated based on the amount of product that they sell. Multi-level marketing plans are generally legal in Michigan.



The key difference between a legal multi-level marketing plan and an illegal pyramid scheme is that a multi-level marketing plan bases compensation almost entirely on the amount of product sold, whereas an illegal pyramid scheme is based on the amount of people recruited.



CASH GIFTING -- JUST ANOTHER TYPE OF PYRAMID



Cash gifting schemes are the quintessential example of a pyramid scheme. Instead of selling products, cash gifting schemes forego the sale of products and just give people cash, but the premise is the same -- like other pyramids, cash gifting schemes are based on the amount of people recruited.



Generally, these gifting "circles," "clubs," or "groups" encourage participants to pay a substantial entry fee (which can range anywhere from $500 to $5,000 or more). This entry fee will guarantee the participants a place on a chart of members. The participants will move on the chart every time they recruit more people into the "circle" or "club." And once the participant moves enough on the chart, they are "guaranteed" a large payout. Gifting schemes operate under a variety of names, as con artists that start these schemes are endlessly creative in their quest to con a lot of people out of a lot of money. But most gifting schemes follow the general pattern outlined in this alert.



Pyramid schemes, including cash gifting schemes, can become popular very quickly, because early participants often receive their payout as promised. Those participants that receive their money then relay their success stories to prospective participants, and the cycle continues. The problem is that eventually the pool of new participants runs out, and the pyramid collapses, and very few participants actually receive any money. Once a pyramid collapses, everyone, except the initial con artist that started the scam, will have limited prospect of ever getting their money back.



I'VE BEEN ASKED TO JOIN A GIFTING SCHEME -- WHAT SHOULD I DO?



In Michigan, prosecutions of cash gifting schemes are generally handled by local prosecutors. Michigan consumers who have been asked to join a gifting scheme, or who are aware of a pyramid or gifting scheme operating in their area, should contact their local police department, county sheriff's office, or local prosecutor.



If you are currently involved in a gifting scheme, you should consider contacting a private attorney. For help in finding a private attorney, please visit the Michigan State Bar's website, at http://www.michbar.org, for information on finding a Lawyer Referral Service in your area. Along with violations of the Michigan Franchise Investment Law, charges under other state statutes are also possible.



Finally, if you are currently involved in a gifting scheme, or have participated in a gifting scheme in the past, keep in mind that you are also required to report any earnings you received to the Internal Revenue Service. Despite any promises made to you by those operating cash gifting schemes, earnings received from a gifting pyramid are taxable. Thus, in addition to consulting a private attorney, you should also consider speaking to a professional tax advisor about your situation.

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  #4  
Old 11-03-2008, 09:30 AM
zvideo zvideo is offline
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Gifting Sites: Are they scam?

Quote:
Whatever Site is TRULY affordable for anyone! With levels beginning at $150 and a small admin fee as low as $50, we make getting started in gifting available to anyone no matter what their budget or experience! How many do you think would be willing and ready to do this now that it's affordable?!
How doe this type of stuff work and is this a scam where people keep putting money in to get money out without any product other than a website? Any experience with this type of program? Thanks!

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  #5  
Old 11-03-2008, 11:25 AM
calvinandhobbes calvinandhobbes is offline
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Re: Gifting Sites: Are they scam?

not only are gifting schemes merely pyramid schemes, they can severely mess you up with the IRS. Keep in mind a "gift" given with the expectation of getting something in return is not a gift, it's a payment.

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  #6  
Old 11-04-2008, 04:10 AM
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Highena Highena is offline
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Re: Gifting Sites: Are they scam?

True, just another twist on the pyramid scheme scams.
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Latest email scams

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  #7  
Old 11-05-2008, 07:13 PM
pcwork pcwork is offline
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Re: Gifting Sites: Are they scam?

There are a lot of threads here about cash gifting scams.

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  #8  
Old 12-13-2008, 10:57 AM
tony83 tony83 is offline
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Is Cash Gifting a Scam? does it work?

Hi Guys,

I've been seeing a lot about cash gifting lately. Is it real, does it work and is it legal?

thanks

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  #9  
Old 12-13-2008, 11:18 AM
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BorisZ BorisZ is offline
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Re: Is Cash Gifting a Scam? does it work?

Go away scammer.

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  #10  
Old 12-13-2008, 11:19 AM
tony83 tony83 is offline
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Re: Is Cash Gifting a Scam? does it work?

Quote:
Originally Posted by BorisZ View Post
Go away scammer.
what? whats that about, scammer?
whats your problem dude

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  #11  
Old 12-13-2008, 11:25 AM
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BorisZ BorisZ is offline
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Re: Is Cash Gifting a Scam? does it work?

Sorry, I was too fast on the trigger. But you are asking a stupid question. Do you think money laundering is legal, or ponzi or chain letter?

Read this website and educate yourself
http://www.cashgiftingwatchdog.com/

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  #12  
Old 12-13-2008, 11:27 AM
tony83 tony83 is offline
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Re: Is Cash Gifting a Scam? does it work?

Quote:
Originally Posted by BorisZ View Post
Sorry, I was too fast on the trigger. But you are asking a stupid question. Do you think money laundering is legal, or ponzi or chain letter?

Read this website and educate yourself
http://www.cashgiftingwatchdog.com/
well sorry, I wasn't saying that it was legal, but you have hundreds of people posting videos and selling it online.. so I was just checking..
my gut instinct said that it was a scam, but I was just checking..

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  #13  
Old 12-13-2008, 02:57 PM
ProfHenryHiggins ProfHenryHiggins is offline
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Re: Is Cash Gifting a Scam? does it work?

It's organized criminal activity, Tony. "Works" doesn't change whether something is legal or illegal. And in this case, the "working" scheme counts as a felony crime.

The Attorney General in Michigan, for example, issued an official press release in mid-October warning that cash gifting carries a 7 year prison sentence in his state.

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  #14  
Old 12-13-2008, 03:03 PM
gemijame gemijame is offline
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Re: Is Cash Gifting a Scam? does it work?

Thank God I was warned about this through coming upon your site! Do not be fooled by this scam- and send any letters back to the postmaster. Sincerely.gemi

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  #15  
Old 12-20-2008, 08:43 AM
BrianM BrianM is offline
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Re: Is Cash Gifting a Scam? does it work?

Quote:
Originally Posted by ProfHenryHiggins View Post
It's organized criminal activity, Tony. "Works" doesn't change whether something is legal or illegal. And in this case, the "working" scheme counts as a felony crime.

The Attorney General in Michigan, for example, issued an official press release in mid-October warning that cash gifting carries a 7 year prison sentence in his state.
I'm not a big fan of you, so I thought I would call your BS until you prove this wrong. But I did a search on various search engines and NOT ONE thing has been mentioned about your above quoted claim. I think you need to provide a source if anything.

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  #16  
Old 12-20-2008, 09:03 AM
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nomaxim nomaxim is offline
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Re: Is Cash Gifting a Scam? does it work?

Quote:
Originally Posted by BrianM
But I did a search on various search engines and NOT ONE thing has been mentioned about your above quoted claim. I think you need to provide a source if anything.
Perhaps you should have just searched the website of the Michigan Attorney General. It only took a few seconds to find. The 'source' as you put it was given.

Cash Gifting Schemes 10/2008 CONSUMER ALERT, some quotes from the article,
Quote:
No matter how these schemes are presented, the bottom line is the same for all -- cash gifting schemes are illegal in Michigan. This consumer alert will provide Michigan consumers with information on how to spot illegal cash gifting scams, and what to do if they believe one of these scams is operating in Michigan.

-and-

Violations of Section 28 of the Michigan Franchise Investment Law are a felony, punishable by a fine of up to $10,000 or seven years in prison.
Also see, FTC Consumer Alert-The Gifting Club "Gotcha"
Quote:
Promises of quick, easy money can be a powerful lure Ė especially when it comes with the additional benefit of new friendships.

If youíre approached about joining a club but you arenít sure if itís an illegal gifting club, the Federal Trade Commission reminds you to:

* Consider that a legitimate gift has no strings attached and is not an "investment."
* Avoid being misled into thinking a gifting club is legitimate because the ads say that members consider their payments a gift and expect nothing in return. This is an attempt to make an illegal transaction look legal.
* Be wary of success stories or testimonials of tremendous payoffs. Very few members of illegal gifting clubs or pyramid schemes ever receive any money.
* Take your time. Donít buckle under to a high-pressure sales pitch that requires you to join immediately or risk losing out on the opportunity. Remember, solid opportunities Ė and solid friendships Ė arenít formed through nerve-wracking tactics.

To File a Complaint
If youíve been victimized by a gifting club promoter, contact your local consumer protection agency, state attorney general and Better Business Bureau.


Last edited by nomaxim : 12-20-2008 at 09:22 AM.
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  #17  
Old 12-20-2008, 09:21 AM
BrianM BrianM is offline
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Re: Is Cash Gifting a Scam? does it work?

Quote:
Originally Posted by nomaxim View Post
Perhaps you should have just searched the website of the Michigan Attorney General. It only took a few seconds to find. The 'source' as you put it was given.

Cash Gifting Schemes 10/2008 CONSUMER ALERT, some quotes from the article,

CASH GIFTING SCHEMES



Local police departments and the Attorney General's Office have noticed a recent surge in inquiries regarding cash gifting schemes. These schemes are presented in an endless variety of ways -- including schemes targeting NASCAR fans, or "socially conscious women."


That above has nothing to do with what the structure of this program is. In fact, in these programs such as Abundant Living System, TPP etc, you have to realize that people are getting MORE than they bargained for. They learn not only to gift but learn how to market programs online. This is like paying a mentor 2500 bucks to learn the secrets on successful internet marketing. I know a handful of people who took what they learned in gifting and applied it to affiliate marketing. There are products being offered and services so Abundant Living System is not on that genre. Your services are learning how to market and training.. the webinars etc. Your products are the ebooks offered. Nothing is wrong with these top programs so far. Now other cheap programs like Cash Arrives 365, Gifts for life, etc are bad. They offer nothing in value. So again, I do not see where anyone in ALS or TPP is at fault for being in the program. The program is fine, it does as advertised and thats to teach people how to drive traffic to the sites and work online.

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  #18  
Old 12-20-2008, 09:43 AM
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BorisZ BorisZ is offline
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Re: Is Cash Gifting a Scam? does it work?

Quote:
Originally Posted by BrianM View Post

That above has nothing to do with what the structure of this program is. In fact, in these programs such as Abundant Living System, TPP etc, you have to realize that people are getting MORE than they bargained for.
Yep they potentially get orange prison suit.

Quote:
Now other cheap programs like Cash Arrives 365, Gifts for life, etc are bad. They offer nothing in value.
Real gifts are not suppose to give back anything in value except gratitude. Thats why it is called a gift. By your logic gifting is a business. And thats why your form of gifting is illegal.

Anyway nice to see you back on your meds.


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