CASH GIFTING SCAM- The Bad, The Worse, The Ugly

Discussion in 'General Advice' started by BigMoneyJoe, Aug 10, 2008.

  1. BigMoneyJoe

    BigMoneyJoe New Member

    I curiously clicked on the "play" button on youtube recently about "make money cash gifting",.
    This one guy, who shall remain nameless, was talking a really good game about how GREAT cash gifting is.
    How it made him loads of dough and he's just rolling in it, and how you can to.

    Cash gifting's a great example of a 1-up system. 1 - up systems are uni-levels generally.
    Because 1-ups have multiple entry levels and qualification standards the "paylines" actually cause
    the "downline" to take on a structure that's clearly pyramidal in structure.

    The giving of money as a gift is fine - but that's NOT what this is...this is a glorified ponzi scheme
    exploiting innocent people and a loophole soon to be closed.

    The very nature of the name should raise suspicion - Cash Gifting.

    If you have to PAY INTO these gifting clubs - it's a scam. A gift, by it's definition, is a thing
    given willingly to someone without payment. If it's a GIFT, why the hell are you and I paying for it?
    - - - - -
    "The Gifting Club Gotcha" FTC :

    A legitimate gift has no strings attached and is therefore, not an "investment". Avoid being
    mislead into thinking a gifting club's legitimate because the ad's say that members consider
    their payments as a gift and expect nothing in return. This is a sorry attempt to make an illegal
    transaction look legal.
    - - - - -
    This should raise red flags immediately!

    They are modeled very similarly to a pyramid scheme. They never last long and if your stuck at
    the bottom, your screwed when people wise up to this "old concept with a new name" and start
    demanding MASS REFUNDS. The system collapses...

    Gifting schemes always leaves losers because they leave losers when people start to complain
    and report when they aren't making any money.
    And they realize they won't be making anything
    long after they've already joined because only the top 10-15% of those who started at the top will
    benefit. The other 85-90% won't.

    It's the basic law of averages.

    To be frank, The pyramiding structure itself is not the REAL problem. Every large pyramid scheme known
    to man (corporations, governments, businesses, etc) is a pyramid if you've ever seen a organizational chart.

    The real problem is when there is no real product or service being sold.

    The system is just a bunch of new people giving old people money while the new people are hoping
    the newer people will come around and give them money. There is no "VALUE" being traded to contribute
    to anyone's livesand eventually those who were tricked into this scheme will be at the end of the thin
    line - prepare for a rude wake up call.

    And those who "knowingly" promotes that which "takes away" from unsuspecting people without
    giving more in return - Are old fashioned bank robbers - minus the black mask's. There will come
    little joy from the attainment of the money made and majority of them will almost certainly lose it
    as fast as they made it. A true definition a Ponzi scheme.

    Hopefully, this article is of great value to you and will help prevent you from being suckered into
    this "financial death trap". There is no such thing as "Easy Money". I don't care what business you
    choose to get involved in, it will require quit a bit of work on your end. With that comes with it's true
    rewards - happiness, freedom, and a sense of accomplishment.

    After you do a little elbow grease, than the money becomes easy to make. You see people have
    it COMPLETELY backwards.


    Conversations will dull quick if a friend or family member asks you the sweat question : "So, what do
    YOU do for a living".

    I f you take the easy road out, you will eventually suffer the consequences.

    Take the time to build a business and you will see the fruits of your labor in return. It's simple if you
    take the time to learn and apply yourself. We all have something of value to offer, just don't be afraid
    to share it with others.

    The simple definition of the law of reciprocity states:

    The world gives you, that which you give to the world.


    Until later,

    Josef Benjamin Rosenberg
     
  2. annadenise

    annadenise Active Member

    What an exceptional post! I've been bombarded the last couple of month's with people asking me to join these. They are not legal no matter what anyone says.

    Find a good solid business, work it, help others and be a good team player.
     
  3. Bigrich

    Bigrich New Member

    I was contacted by phone with one of these so called "gifting" scams.. all I did was go to the site and didn't take me a few minutes to figue out that if I was to give,, I'd never recieve......
     
  4. jltp18

    jltp18 New Member

    Cash gifting is legal, you are allowed to gift anyone up to $12,000 per year. I'm sorry for you because you are all having a wrong idea of the concept. It's obviously not a business model or anything like that, is a private activity that is helping a lot of people around the world.

    Maybe they weren't too popular back in 2007, but 2008 is being the year of cash gifting because it has been simplified a lot, making it a more autopilot system, also the 1up structure is great. It also depends on what system you are in and how you market it in order to get some results.

    Please do yourself some research and realize that cash gifting is not a scam.

    Thanks.
     
  5. unselfishguy

    unselfishguy Guest

    Cash gifting is totally legal if you choose to send cash as a gift yourself. HOWEVER, if you advertise to tell people to send cash to you in exchange of nothing... that is a whole different situation.
     
  6. surfininfl

    surfininfl New Member

    Excellent post Josef,

    Let's face it we all need money to survive in this world. However, the pass it on theory doesn't work in most of the cash gifting clubs unless all of the members share the same high moral standards. Much success to all!
     
  7. mcarroll

    mcarroll New Member

    Structured Cash Gifting is illegal~bbb.org has exceptional information on that topic alone.
     
  8. brentw

    brentw New Member

    jltp18: Cash gifting is legal, you are allowed to gift anyone up to $12,000 per year. I'm sorry for you because you are all having a wrong idea of the concept. It's obviously not a business model or anything like that, is a private activity that is helping a lot of people around the world.

    Maybe they weren't too popular back in 2007, but 2008 is being the year of cash gifting because it has been simplified a lot, making it a more autopilot system, also the 1up structure is great. It also depends on what system you are in and how you market it in order to get some results.

    Please do yourself some research and realize that cash gifting is not a scam.

    Thanks.

    Yet someone else brainwashed by some very
    incorrect information.

    What you quoted was IRS regulations...and yes,
    its is legal to give without being taxed.

    But that is not the law that is being broken or
    even in question...

    I'd advise you to read up on a couple of very
    simple concepts:

    1. Ponzi
    2. Pyramid Scheme

    Realize that in both of these scenarios that
    new people have to be continually found to
    keep the giving/receiving going. Without a
    product/service being exchanged without
    attachment to the ability to make money,
    it falls under one (or both) of these terms.

    And you would not be prosecuted under
    the tax code, you'd be prosecuted under
    your state's consumer fraud laws and
    possibly Federal wire fraud if you used
    the Internet to receive the money.

    Personally, I love freedom...more than
    just time freedom that we have in
    legitimate home based businesses, but
    real freedom (i.e. not being in jail!).

    I'd advise you to enjoy the same freedom
    and find something different to participate
    in.

    Brent

    P.S. If you don't believe me, you should
    read up on a concept called forfeiture...
    imagine the government seizing your
    house, car, or any other asset that they
    claim may have been obtained via the
    illegal activity. The burden of proof then
    falls on you to prove otherwise (and
    good luck with that!).
     
  9. Newbie Shield

    Newbie Shield Gold Member

    jltp18: Cash gifting is legal, you are allowed to gift anyone up to $12,000 per year. I'm sorry for you because you are all having a wrong idea of the concept. It's obviously not a business model or anything like that, is a private activity that is helping a lot of people around the world.

    Maybe they weren't too popular back in 2007, but 2008 is being the year of cash gifting because it has been simplified a lot, making it a more autopilot system, also the 1up structure is great. It also depends on what system you are in and how you market it in order to get some results.

    Please do yourself some research and realize that cash gifting is not a scam.

    Thanks.

    Wrong.

    ~Newbie Shield~
     
  10. susanwood

    susanwood New Member

    I've seen a lot of that cash gifting stuff... and it just doesn't feel right. I've seen the videos on youtube that show people opening packages with cash in them, inside of a magazine... Personally, I just don't like the idea. The fact is that in order to get others to give you gifts, you still have to maket, right? Without any customers, you won't have a business.

    Marketing is the second biggest challenge we have when learning to operate a home business... and it can be expensive and time consuming experience. As long as I have to market, I prefer to market something... as opposed to nothing. I'd much prefer to work with a top tier direct sales model and a company that has great products, great commissions, great support, great systems, and great teamwork.

    The first biggest challenge is what's between our ears! The gyrations our brains do to keep us small and limited are amazing! In order to be successful, we each need to address and conquer whatever little "demons" we have running through our heads, so make sure to select a business that is a harmonic match with your values.

    I have no argument here, one way or the other--just the suggestion to follow your heart. (By the way, your brain doesn't like that-- doesn't want you to follow your heart... so it can be a challenge!)

    All the best to those who are looking to grow in all areas of their lives (not just money).
     
  11. jltp18

    jltp18 New Member

    Properly Structured Cash Gifting Activities are NOT PYRAMIDAL in structure. its called 1up system. check it out. bye.
     
  12. 040107

    040107 Member

    jltp18: Properly Structured Cash Gifting Activities are NOT PYRAMIDAL in structure. its called 1up system. check it out. bye.

    The words "cash gifting", "1-up", and "system" don't mix well
    together.

    In the USA, you can give up to $12,000 to a single person without
    incurring a tax liability. Financial professionals use this tax law to
    help clients structure financial plans.

    However, this law only pertain to (real) gifts which the giver gives
    without expectation of anything in return.

    The difference between legal cash gift and illegal gifting club
    (program, system, scheme, etc.) is people join cash gifting clubs has
    one thing on their mind. That is they hope to make money in
    return. This changes everything and makes it illegal because it's no
    longer gifting in the legal sense.

    Dispite disclaimers on gifting websites stating that you understand
    by joining and giving your gift, you're not expecting anything in
    return, it still doesn't make it legal.

    Why?

    Having disclaimers doesn't make anything legal. Cash gifting sites
    clearly want you to believe just the opposite. These sites flash the
    cash in your face and make it clear that if you want to make that
    kinda of money (overnight) you need to join the program. So it
    clearly contradicts their disclaimers.

    All this citing of the tax law is only a distraction and irrelevant. The
    bottom-line is it's still illegal.

    No matter what words you use to describe and label your cash
    gifting activities, it still doesn't make it legal because the person
    giving is expecting a return on their money (hopefully).
     
  13. brentw

    brentw New Member

    jltp18: Properly Structured Cash Gifting Activities are NOT PYRAMIDAL in structure. its called 1up system. check it out. bye.

    I hate to burst your bubble...but if you truly draw out
    a 1-up plan, it ends up looking like a pyramid.

    Of course, the "look" of the structure has less to do
    with the legalities of it than how the scheme actually
    works...and how it works is what makes it illegal.

    Brent
     
  14. Newbie Shield

    Newbie Shield Gold Member

    Susan's instincts serve her well.

    040107 is dead on with 100% of his/her explanation and the opening sentence is a valuable sentiment. Nicely put and thanx.

    Brent is also entirely correct.

    The recent invasion of ASD upon this forum was a prime example. It was fishy, unbelievable, clearly unsustainable, and insubstantial. Lots of folks lost thousands of dollars in borrowed funds.

    If you ever come across anything that has a similar feel, don't touch it or give it another thought. Do yourself a favor: listen to your gut and protect yourself.

    Yes, you can currently contribute/donate up to $12,000 (not too long ago it was $10,000) a year to an entity of your choice.

    This can be valuable for write-off purposes and/or to drop your income by one tax bracket. Obviously, you'd have to make enough money to be in the second lowest tax bracket or higher to make effective use of this tactic. I've done it legally every time it was appropriate. It's a wise business decision in the said situation. Do it if it will help you.

    But know who or what you can donate to in order to get a qualified write off. Last I heard, you can not donate to your spouse to get a write off.

    That may sound silly, but if you get audited and you fudged your target donation, you'll get taxed and penalized. Be sure to acquaint yourself with the current and local laws before you try this tactic or anything similar.

    ~Newbie Shield~
     
  15. jltp18

    jltp18 New Member

    That's ok guys. I understand your position. I was like you in the past and I will not discuss more about this cash gifting thing. If you don't like it or thinks its illegal..thats good for you. I won't try to convince you because I know this stuff is certainly not for everyone. I will still be making money from this and you from other programs. there are different niches in the market for different kinds of people.. thats fine and I understand....
     
  16. opendomain

    opendomain New Member

    I think you're missing the big point here. It's not that they "think" it's illegal.... It IS illegal

    Regardless of what smoke and mirrors placed in front of you cash gifting as a program effectively negates any "gift" you were giving. Hence the crackdown on EVERY robust gifting program ever.

    Remember:
    Cash Gifting = Illegal
     
  17. bazball99

    bazball99 New Member

    Frankly, I am just sick and tired of all these people on the internet saying "cah gifting is a scam" or "cash gifting is a ponzi" or "postcards and other marketing are forms of solicitation." First of all, these people CLEARLY do not understand the definition of a ponzi. If they did, this wouldn't even enter into their close-minded heads.

    For those who think marketing is a solicitation. I will give them half credit. If the wording of the ads does not follow the guidelines, then yes, it's a solicitation. The point is to INVITE people to learn about the program...not to "sell" them and make money claims.

    For the people who think this is "scam," have you ever even tried cash gifting? Do you understand how it works? Do realize that's it been around for more than 30 years???? If it's a scam, then why do SO MANY gifters give their full name, email address, phone number and sometimes a video or picture?? If it was a scam, do you think I would plasture my face and contact information all over the net? Only if I was crazy (which my wife will probably tell you I am).

    I tell you what....You keep thinking that it's a scam, a ponzi or just plain illegal while myself and thousands of others keep receiving thousands of dollars every week while the rest of the world gets up everyday to go to a lowsy "9-5."

    Feel free to contact me anytime....I don't hide anything.
     
  18. ateamfuntimer

    ateamfuntimer New Member

    Wow this is an interesting post. I was contacted a while back by a guy who said he was calling a bunch of successful members of a travel opt that I am involved with. I guess they figured we were making money so they could get us to join.

    Needless to say I ran for my life. They idea seems so cool but when you think about it then you understand that it is a scheme. You give money to someone you dont know and hope to get others to give you money as well. Now what happens when they pick up and close down their websites and run for the hills with our money. What then?

    You are giving money to someone you dont know for nothing in return. That just seems crazy to me. I say get a good home based business with a good product and pay plan and then work it. Thats the way to make the cash you want.

    [​IMG]Adam[​IMG]
     
  19. getagrip

    getagrip Gold Member

  20. MyOwnBoss

    MyOwnBoss New Member

    In my experience when someone gets into trying to split a legal hair this way, I'd avoid the whole thing.

    It's like saying I didn't commit murder because I wasn't technically shooting at that guy, I was actually shooting at something that happened to be directly behind him.

    bazball99:
    For those who think marketing is a solicitation. I will give them half credit. If the wording of the ads does not follow the guidelines, then yes, it's a solicitation. The point is to INVITE people to learn about the program...not to "sell" them and make money claims.
     

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