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Article #420

Re: Illegality of "Make Money/Fast Cash" Schemes

#420
From: Doug Fry
Date: Sun, 20 Oct 1996 00:00
95 lines
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In a previous article, bd232@FreeNet.Carleton.CA (R. Findlay) says:

>
>In a sentence, don't post or distribute them!
>
>==========================================================================
>As applied to Canada . . . 
>
>                EXTRACT FROM THE CANADIAN CRIMINAL CODE
> 
>206. (1) Every one is guilty of an indictable offence and liable to
>imprisonment for a term not exceeding two years who . . .
> 
>(e) conducts, manages or is a party to any scheme, contrivance or
>operation of any kind by which any person, on payment of any sum of money,
>or the giving of any valuable security, or by obligating himself to pay
>any sum of money or give any valuable security, shall become entitled
>under the scheme, contrivance or operation to receive from the person
>conducting or managing the scheme, contrivance or operation, or any other
>person, a larger sum of money or amount of valuable security than the sum
>or amount paid or given, or to be paid or given, by reason of the fact
>that other persons have paid or given,or obligated themselves to pay or
>give any sum of money or valuable security under the scheme, contrivance
>or operation;
>=====================================================================
>As applied to the U.S.  ...
>
>  [Inspection Service Seal]   United States
>                                Postal Inspection Service
> 
> Chain Letters
> --------------------------------------------------------------------
> 
> A chain letter is a "get rich quick" scheme that promises that your
> mail box will soon be stuffed full of cash if you decide to
> participate. You're told you can make thousands of dollars every
> month if you follow the detailed instructions in the letter.
> 
> A typical chain letter includes names and addresses of several
> individuals whom you may or may not know. You are instructed to send
> a certain amount of money--usually $5--to the person at the top of
> the list, and then eliminate that name and add yours to the bottom.
> You are then instructed to mail copies of the letter to a few more
> individuals who will hopefully repeat the entire process. The letter
> promises that if they follow the same procedure, your name will
> gradually move to the top of the list and you'll receive money --
> lots of it.
> 
> There's at least one problem with chain letters. They're illegal if
> they request money or other items of value and promise a substantial
> return to the participants. Chain letters are a form of gambling,
> and sending them through the mail (or delivering them in person or
> by computer, but mailing money to participate) violates Title 18,
> United States Code, Section 1302, the Postal Lottery Statute. (Chain
> letters that ask for items of minor value, like picture postcards or
> recipes, may be mailed, since such items are not things of value
> within the meaning of the law.)
> 
> Recently, high-tech chain letters have begun surfacing. They may be
> disseminated over the Internet, or may require the copying and
> mailing of computer disks rather than paper. Regardless of what
> technology is used to advance the scheme, if the mail is used at any
> step along the way, it is still illegal.
> 
> The main thing to remember is that a chain letter is simply a bad
> investment. You certainly won't get rich. You will receive little or
> no money. The few dollars you may get will probably not be as much
> as you spend making and mailing copies of the chain letter.
> 
> Chain letters don't work because the promise that all participants
> in a chain letter will be winners is mathematically impossible.
> Also, many people participate, but do not send money to the person
> at the top of the list. Some others create a chain letter that lists
> their name numerous times--in various forms with different
> addressee. So, in reality, all the money in a chain is going to one
> person.
> 
> Do not be fooled if the chain letter is used to sell inexpensive
> reports on credit, mail order sales, mailing lists, or other topics.
> The primary purpose is to take your money, not to sell information.
> "Selling" a product does not ensure legality. Be doubly suspicious
> if there's a claim that the U.S. Postal Service or U.S. Postal
> Inspection Service has declared the letter legal. This is said only
> to mislead you. Neither the Postal Service nor Postal Inspectors
> give prior approval to any chain letter.
> 
> Participating in a chain letter is a losing proposition. Turn over
> any chain letter you receive that asks for money or other items of
> value to your local postmaster or nearest Postal Inspector. Write on
> the mailing envelope of the letter or in a separate transmittal
> letter, "I received this in the mail and believe it may be illegal."
> 
>
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From: br816@freenet.toronto.on.ca (Doug Fry)
Subject: Re: Illegality of "Make Money/Fast Cash" Schemes
Date: 1996/10/20
Message-ID: <DzKCs5.8wM.0.bloor@torfree.net>
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sender: br816@torfree.net (Doug Fry)
references: <54298v$a67@freenet-news.carleton.ca>  
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reply-to: br816@freenet.toronto.on.ca (Doug Fry)
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