I got involved with a cash gifting opportunity a few years ago. I stumbled across it when I walked into a friends house and overheard part of a conference call she was on. She tried to shut me out, but I was curious so I listened. It sounded really fun and very simple and quick way to make some easy money. I'd never heard of MLM or pyramid scams or anything like that. But I did know some of the people on that call and they were respectable citizens. Those I didn't know were all talking about their successes too. They all had good jobs, sounded educated...so I figured that they knew more then I obviously did and I always thought about investing my money somewhere--so that was my chance. (so to speak).

Not really understanding the process, but definitely willing to take the risk...I cash gifted $5000. Our particular opportunity was cash gifting WOMEN only. We had a sheet of rules (no one used last names--some used nicknames--first clue), we had a conf call each week, and we shared this opportunity with family and close friends.

I entered this opportunity in November and became really excited and shared the opportunity with all my close friends and family. My mother, my sister, my best friends....great! I watched as my name slowly shifted down the list and by April...I received all of my gifts, $40,000 CASH. I gifted myself back on another board and sat back as my friends jumped on and started moving through it. After all seeing was believing, and I made my money.

In August of that same year, I discovered what Pyramid Schemes actually were and how I was involved with one. This thing blew wide open in my community and surrounding communities. People got arrested and many struggled to find money to pay back what they could and try to keep everyone quiet. The Attorneys General website had a great article on the exact program I was involved with. I would spend time reading about it on the internet and watched the daily news as more people were getting caught and stepping forward. No charges were pressed IF you agreed to pay the money back. However, state lines had been crossed and this thing was traced to 5 states south and east of me!

To make a long story...longer...I hired a Criminal Defense Attorney. I wanted to protect myself from a lawsuit and prepare myself for the worst. Every day, I WATCHED out my window as the police car would make its rounds in the neighborhood. I watched as people I knew struggled with the stress of all of this, friends turned on each other, family members turned on each other...it was very destructive. I was not able to get my money back from the people I gifted as they were in another state. But I had to take out a loan against my home to pay back all that I had been given. I can joke about it now and honestly say that there is something harder than making $40K...it's paying it back after you thought it was yours!

My family and friends recovered from this. Some people created Gag orders and had people sign them and agreed to settle on 1/2 the amounts. Some insisted on full amounts...and a few agreed to let it go completely (realizing that they gave it as a gift). I know some people that got away with it and still worry about this coming back to them one day. I've heard tons of rumors about me...that I made hundreds of thousands in this scheme...ha! I have a nice 2nd mortgage that would tell a different story. But I keep quiet. I don't want the stress of what this brought into our lives to EVER happen again.

Experience comes in all shapes and sizes and this was a life lesson that I will never forget. I'm thankful that I got out from under it, but I would RUN from any type of GIFTING opportunity if it was presented to me. It's totally a scam. People lose. It’s not possible to gain anything unless you are close to the top of the person who created it. And, just in case you’re wondering, I traced my gifting scam back to the originator and she knows it. It wasn't that far back and I was amazed at how close to the beginning I really was....but there were SEVERAL boards going to get to me.

I don't care what someone calls this multi level gifting opportunity...it can be a business of ANY name. BUT...if it forms the shape of a triangle and your only way of success is by the introduction of new members....you may want to take a serious second look before getting involved. And if you are so bold as to say it's legal...that's fine too. I'm sure there are loopholes that continue to emerge....but remember...you MUST be close to the beginning to collect. After all....several people will fail for you to succeed....and in my book...that’s not really success at all. That's greed.