New members are also given the option of joining the organization without participating in the recruitment of new members. A also receives three more identical brochures and a club decal. B. C, and D will occupy the No. 9 position on their respective cards. According to the plan, B, C, and D would then each sell three memberships. As the market becomes saturated, the chance of receiving money diminishes.
All members receive certain benefits from the Respondent as a result of joining the organization.
Of that total, about 600 people have reached the No. 1 position on any card. Respondent is engaged in conducting a lottery or scheme for the distribution of money by chance. Conclusions of Law 1. A simple chain letter has been held to constitute a lottery. United States v. 21 Items of Mail , Nos.