Eventually, the fraud runs out of new victims and the last waves of participants are left with no revenue. Effectively, everyone participating in the pyramid fraud is hoping to reap unearned cash from gullible later victims. Prize is usually in the form of money, commissions, or something else of value that the solicitation claims you will receive.
Consideration is the required payment to the sponsor in order to obtain the prize.
Chance is determined by the activities of participants over whom the mailer has no control. However, since the success of the program is dependent on the number of people willing to participate, all three elements that constitute a violation continue to be present. The promoter of this scheme has been advised of the potential violations involved and has been requested to discontinue this type of mailing activity. Click to Download. Harness the power of your network.