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pyrimid shcemes??

i live in a small town in south wales. since feb this year a shceme has been going around getting people to invest 3 grand for a 23 grand return. i was so sceptical and refused to join from the start! but now its so big that people i know are reinvesting as they have been paid out several times. does have anyone have any experiance of such a scheme? should i do it? i feel like im going to miss out on something big. please help!

lea83 Wed 20/08/08 22:10

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scotgal
Wed 20/08/08
22:11

Yes - don't do it!!!!!!!!!!!!

tiggerblue10
Wed 20/08/08
22:12

If you are talking about pyramid selling then I wouldn't do it. Have you any proof that people are successful?

Barmaid
Wed 20/08/08
22:12

Typical scam. You pay in - they pay out more, you pay in some more, they pay out even more and so forth. you pay in even more and then nothing.

The idea is to increase confidence - you can't lose can you? You've made SO much money so far, you can't resist that final pay in. Don't do it.

CheekyChops
Wed 20/08/08
22:20

The people in at the start do make money but the scheme eventually crashes leaving loads with none.

You usually have to invest £3K and introduce 8 people (or similar number). Those 8 then have to introduce another 8 investors each (8 x 8 =64 people) who also have to introoduce 8 people (64 x 8 =512 people) etc etc

See where this is going? Eventually the number of people needed to invest to pay out the others becomes so big it just isn't viable.

lea83
Wed 20/08/08
22:48

Question Author

Thanks guys. youve confirmed my doubts. i think i'll save my money.

Ethel
Wed 20/08/08
23:21

Don't tell me this is rearing its very ugly head again - 10 years ago it was 'Women Empowering Women' and 'Hearts'.

Exactly the same thing as this - caused a lot of misery:

http://www.wewscam.com/aka.htm

http://www.guardian.co.uk/world/2001/jul/30/ge nder.uk

And there is NO legal recourse at all when you lose your money (and friends)

badnews
Thurs 21/08/08
21:30

Women Empowering Women. I paid £750 to join and got my sister and a couple of friends to do the same. Shortly after the pyramid crashed and we all lost our money and recieved nothing!!!!!!! I still feel bad about it now. Dont do it.

GypsyGSD
Sat 23/08/08
22:56

I think two people I no are in this small town you mention they are talking about it two my advice to them and you dont do it GypsyX

Whickerman
Sun 24/08/08
12:17

just to put this into perspective - and to add to CheekyChops' shrewd analysis of this - to get any return at all by the time this reaches the 8th layer of investors, you would need to have 16,777,216 people investing with no-one pulling out. Further, the next layer needs over 134million investors.

This type of scheme actually brought down the Albanian economy, and when it reared its ugly head in Ireland was made illegal. And the killer was that the people involved at the lower levels knew this and actually made complaints about the media reporting it, as it killed their 'investment'.

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