Business Opportunities Loader Convicted
" Richard Balber was an AmeriP.O.S. salesman known as a "loader". His job was to entice existing distributors to purchase additional terminals. If another salesman successfully closed a business opportunity sale, Balber contacted the distributor within a few days or weeks for the purpose of soliciting an additional investment. Balber falsely claimed that another person had cancelled a large order of terminals for personal reasons and that, as a result, AmeriP.O.S. could offer additional terminals to the distributor for a substantially reduced rate. Balber pled guilty to conspiracy to commit an offense against the United States - mail fraud -in violation of 18 U.S.C. ยง 371, on April 6, 2005."
Why does loading work?
First, by offering a "discount" the distributor believes that he is getting something for nothing. Second, it is well known that gamblers immediately after placing a bet will rate their confidence in the bet being correct as significantly higher than just before placing the bet. There is no rational reason for this increase in confidence, but the loader can take advantage of the phenomena. If the investor bought 6 machines for $10,000, then surely 12 more machines for the same price is a heckuva a deal. To back out on purchasing the new machines would be to admit doubt as to the wisdom of the first purchase.
