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PYRAMID OR CHAIN REFERRAL SCHEMES

NCJ Number
26399
Journal
International Criminal Police Review Issue: 288 Dated: (MAY 1975) Pages: 144-149
Author(s)
ANON
Date Published
1975
Length
6 pages
Annotation
THIS EXPOSE SHOWS THE INHERENTLY FRAUDULENT NATURE OF CHAIN DISTRIBUTORSHIP SCHEMES AND THE WAY THEY ARE ORGANIZED AND OPERATED.
Abstract
WITHOUT HAVING THE INCLINATION OR THE ABILITY TO MARKET THE GOODS THAT THEY ARE SUPPOSED TO DISTRIBUTE, THESE WHITE COLLAR CRIMINALS RELY ON THE SELLING OF DISTRIBUTORSHIPS. THE PURCHASER OF A DISTRIBUTORSHIP FINDS HE CAN RECOUP HIS CASH OUTLAY BY SELLING TWO OR MORE DISTRIBUTORSHIPS. UNFORTUNATELY, THE NUMBER OF DISTRIBUTORSHIPS EXCEEDS THE PARENT COMPANY'S ABILITY TO SUPPLY THEM, AND OFTEN EXCEED THE NUMBER OF POTENTIAL CUSTOMERS.

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