As in the case of chain letters, in a pyramid, only the people at the very top make any money. Participants can only make money if there are participants in levels below them. Eventually pyramid schemes break down because the pool of possible recruits becomes exhausted and recruitment stops. Those at the bottom of the pyramid, the vast majority of the participants, lose money because there is no one in the pyramid below them. Defendants advertise and market their charity pyramid scheme in newspapers and on the Internet, using electronic home pages on the World Wide Web.
Defendants also use telephones, faxes, and mail to distribute their promotional documents.
Defendants claim that their primary goal is to fund charities and that by becoming a participant in the Defendants' pyramid scheme, a participant will ensure, not only that his or her favorite charity will receive funds, but that the participant also will receive substantial income. See Attachment A at 4. 13. See Attachment A at 6. The Vision To create a path to financial independence for ourselves and worthy cause. Defendants' violations of Section 5 of the FTC Act, as set forth above, have caused and continue to cause substantial injury to consumers.