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Tag: Women’s Gifting Circles

  • Women’s ‘Gifting Circle’ Participants Risk Felony Prosecution; ‘Stop Immediately’ And Pay Back Money, Idaho Attorney General Warns

    Attorney General Lawrence Wasden at an Idaho event last year. Source: website of the attorney general.
    Attorney General Lawrence Wasden at an Idaho event last year. Source: website of the attorney general.

    The successful felony prosecutions under federal law of two Connecticut women in a cash-gifting scam apparently hasn’t registered in Idaho.

    Now, the state’s attorney general, citing the Connecticut prosecutions that led to lengthy prison sentences, is taking action. And he’s not mincing words.

    “Taking part in an unlawful pyramid scheme violates the Idaho Consumer Protection Act and is a felony under the state’s criminal code,” Attorney General Lawrence Wasden said. “Make no mistake – taking part in these schemes is illegal. Anyone who has received money from participating must pay it back. Failure to do so may result in civil or criminal enforcement action.”

    Idaho investigators have received two recent reports of illegal gifting pyramids operating in the state, Wasden’s office said. Sums of $5,000 are being solicited. Reports identified the schemes as a “Women’s Wisdom Circle.”

    One has “a formal dinner theme, the other a gardening theme,” Idaho prosecutors said.

    From a statement by prosecutors (italics added):

    In one Women’s Wisdom Circle reportedly operating in Ammon, participants are being asked to pay a $5,000 entry fee. By recruiting others, participants can then advance up the pyramid through levels named after the courses of a formal dinner: appetizer, soup/salad, entrée and dessert. Reports investigated by the Consumer Protection Division indicate those at the top of the pyramid have received payments of up to $40,000.

    The gardening theme gifting circle operating near Preston makes “soil” the entry position, while “harvester” rests at the top of the pyramid.

    The schemes are promoted as gifting programs intended to empower women and claim to adhere to IRS gifting rules. Women are encouraged to keep their involvement secret and are required to sign a statement that the money they pay is a gift, with nothing expected in return.

    The statements are false and do not make participation legal, regardless of what potential recruits are told, Wasden said.

    “Participants should stop immediately,” Wasden warned. “Unlawful pyramid schemes collapse, hurt people financially and are a crime in Idaho.”

  • Hawaii Prosecutor Says ‘Women’s Gifting Circles’ Pyramid Scheme Operating In State — Plus, Update On ‘Blessing Gold Club’

    recommendedreading1“Women’s Gifting Circles” or “Women Empowering Women Circles” pyramid schemes are operating in Hawaii, said Kauai Prosecuting Attorney Justin F. Kollar.

    “These schemes are marketed as a way to entice women through a tiered investment model, often using language that speaks in terms of ‘empowering’ women spiritually or financially,” Kollar said. “The people at the top of the pyramid collect money from those at the bottom of the pyramid, plain and simple. The people at the bottom are promised future rewards that are based on recruiting additional followers to start new circles. These schemes are illegal and are designed by predators to extract money from people who trust them.”

    A similar scam led last year to federal prison sentences for two Connecticut women. There were reports that  “Women’s Circle” scheme also was operating in British Columbia in Canada.

    From a statement today by Kollar’s office (italics added):

    In many cases, women who are being recruited are told not to talk about the circle for various reasons, or are told that the practices are legal as long as the dollar amounts are under a certain threshold. However, violators can be subject to criminal and civil penalties under State securities laws.

    In other cash-gifting fraud news, a source told the PP Blog today that members of a cash-gifting scam known as BlessingGoldClub are trying to offload “units” in the Better-Living Global Marketing HYIP scam for $500. The units purportedly are being discounted from $1,295.

    BLGM members have been fretting about not getting paid. The “program” is similar to the Zeek Rewards’ Ponzi scheme.

    TelexFree figure Scott Miller also has been a proponent of cash-gifting. Miller’s Facebook site for TelexFree, alleged in Brazil to be a massive pyramid scheme, appears not to have been updated since Jan. 10.