How You can Have a Life Without Debt!
Wouldn't we all like a Life without Debt? Eric Torbenson writes about Mr. Phipps in Scheme suspect on trial about Life without Debt - unfortunately a pyramid scheme.
"Federal prosecutors allege that Mr. Phipps swindled millions of dollars from thousands of people over 20 years through a series of pyramid schemes, including a program called "Life Without Debt" that he ran out of his Colleyville home from 1996 to 2001, according to a 22-count indictment alleging mail fraud, money laundering and tax evasion."
The interesting thing about Mr. Phipps is that he is a recidivist, committing pyramid scheme after scheme. How was he able to get away with it?
"Officials say it's difficult to stop such pyramid schemes, which mask themselves as legitimate multilevel-marketing businesses. The schemes spread through friends and family, and victims often won't talk to investigators when the pyramid collapses.
"One of the problems with tracking them is that victims often refuse to acknowledge they've been had," said Susan Grant, director of the fraud center for the National Consumers League in Washington. "We hear of victims who turn on prosecutors because they think they're denying them their chance at more money."
The federal charges are the first Mr. Phipps has faced after plying his trade for two decades." (my emphasis)
On straight pyramid schemes, as opposed to mixed pyramid and MLM schemes, I actually favour legalization and a state monopoly. Straight pyramid schemes attract the same people who like lotteries. For years, regulators did their level best to shut down the numbers games -until they realized that if lotteries were a tax on the stupid, why shouldn't the state get its fair share?
Straight pyramids, in my opinion, should not be benefitting the low life the currently run them. Let's have a open and state sponsored lottery which mimics the thrills of a pyramid.
