PYRAMID SCHEME WAS VERY POPULAR IN THE 1970'S

By
Real Estate Broker/Owner with people first...then business Ran Right Realty 636943 licensed to thrill

I remember when someone came up to me one day and said they won $10,000 in a PYRAMID game.. I never heard of this game before and this person was someone I knew and trusted. They were glowing with genuine excitement and explained the whole thing to me. At first glance, it looked too good to be true

PYRAMID GAME

Here is how it works. They take a pyramid. You put down $1000 and are given a spot at the very bottom left side. Someone else comes along and puts down $1000 and you move over one spot to the right and they occupy your former space. Another comes along and you keep moving until you clear tier number one or the bottom tier. (see below)

PEOPLE PLAYING PROVIDE THE MOVEMENT

Then, as people come in, everyone keeps moving and of course you want to clear the next tier and then the next. As you approach the top, the tiers become smaller making your next move thrilling and exciting with expectations.

                                                                                          1000...bumped from here and you get $10,000 

1000 1000

1000 1000 1000

1000 1000 1000 1000

1000 1000 1000 1000 1000

1000 1000 1000 1000 1000 1000

                 start here...1000 1000 1000 1000 1000 1000 1000 1000

YOU GET PULLED IN

You start thinking you have only 10 to go, then 7 to go, then 4 to go and then before you know it, you hit the peak of the Pyramid. Now, the very next person to put down a $1000 pushes you to the GRAND PRIZE of $10,000. For someone just starting out, the pressure is on... to get in... so you can get out with the money $$$$                      

TANGLED WEBS

Now here is where it becomes very exciting for those nearing the top two tiers. Knowing that you will win 10,000, many strategize and put down anywhere from $1-3000 of their own money to help move themselves forward. This propels them toward the $10k and any money put down can be recaptured. In the end, you still made money

BEING PRUDENT

The more prudent put money down in other peoples names so as not to draw attention to themselves. The lady I talked with put down $1000 and made $9000 in less than a week. That was a lot of money back then. She then bought two more spaces in her name and started at the bottom

KEEP PLAYING

This game works as long as no one stops playing. As long as you play, the system moves you toward winning serious money. The moment it stops, everyone caught on the Pyramid (or in it) loses their money. It is like a merry go round with people getting on and off. The moment the ride stops, all have to exit.

WHEN THE MUSIC STOPS...YOU BETTER HAVE A CHAIR

Think about this. You don't tell anyone what I just said in the above paragraph. You just explain it as I did and people do their own math. Everyone knows at least 20 people who know 20 who know 20 etc. You will be in and out and long gone with the $$$ or playing with the houses money when it all collapses

NOT ALLOWED

This is deemed illegal activity. However, people don't see this as criminal activity. Consequently they meet in secret, do business in secret and conduct their affairs in secret. The only time the game gets attention is when someone wins and of course when someone plays and loses

This gaming strategy can be applied to stocks, Real Estate and some say even Capitalism

Now, when they call this a PYRAMID SCHEME....It is no longer a game

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Topic:
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Location:
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Tags:
fraud
gambling
easy money
deception
manipulation
shortcuts
ponzi
deceit
schemes
game playing
woe
deceiving
scheming
tricking
beguilement
pyramid game
false hopes
money games

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Rainmaker
908,388
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

I knew some people who got involved with a pyramid scheme about 20 years ago. I recall I couldn't get in on the ground floor because I didn't have $1000 to spare. lol I was glad I didn't because later they got caught in the middle and lost their $.  

Feb 24, 2014 08:34 AM #1
Rainmaker
2,447,010
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Hello Pamela...I was very tempted to jump in and me, my brother and a friend were going to pony up the $1000. When I discovered if it stops your out, that did it for me. However the girl who shared won big. New clothes, jewelry etc...very tempting

Feb 24, 2014 08:37 AM #2
Rainmaker
456,020
Shannon Milligan, Richmond VA Real Estate Agent/Associate Broker
RVA Home Team - Richmond, VA
RVA Home Team - Winning with Integrity.

I love how you said when the music stops you better have a chair, ha! I have never been involved in one of these, but that is likely because I was born in 1976, although I know they still take place.

Feb 24, 2014 08:48 AM #3
Ambassador
889,220
John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

These are all over the place, and typically when they become well known, it's at the point where the music's almost ready to stop.  The bottom seems to always end up paying for the riches at the top...ahhh capitalism indeed.

Feb 24, 2014 10:08 AM #4
Ambassador
894,663
Lynn B. Friedman
Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ... - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

Dear Richie -
Same with the post card pyramids and the good luck if you don't break the chain pyramids - the first ones make out fine!
Have a happy day -
Lynn

Feb 24, 2014 10:19 AM #5
Rainmaker
1,763,811
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

I do remember going to a Pyramid party Richie, it was exciting. I remember sitting there working out the numbers in my head, this couldn't go on forever I thought.

Feb 24, 2014 10:28 AM #6
Rainmaker
2,783,475
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Richie, No matter what one chooses to call it ... I say it is risky business. It's a form of gambling, in my mind.  $1,000 is a lot of money to lay on any line.

Feb 24, 2014 11:38 AM #7
Rainmaker
977,560
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

It's actually a federal crime! If there are winnings, there are no taxes paid on winnings, thereby it's tax fraud!

Feb 24, 2014 11:53 AM #8
Rainmaker
1,143,921
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

I think the fact of having to meet under cover should scream the alarm of a problem but then again there are things I see in daylight that make me scream too

Feb 24, 2014 12:35 PM #9
Rainmaker
2,447,010
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Hello Shannon...it is interesting to watch but not fun to play IF YOU LOSE

John...Excellent commenting..You have a $500 credit at Richie's General Store & Post

Lynn...I bet caveman played  "pass the rock" way back when and someone got stuck left holding the stone...lol

Tom...consider this. We line up one million people and give each one of them 1,000,000.00 dollars. We tel them keep passing the money to your right and they do. Consequently everyone has a million as long as it keeps being passed around. If several people decide to take off running for the hills, the whole game goes south and a select few get burnt. That's the reality of it. The question is..who gets burnt?

Kathleen...that is a sobering statement this comment of yours. That's why I considered going in with two other people as others did too. Don't forget, once in and you have won, you keep playing with the winnings now. the people in the beginning don't lose. Its the ones coming in that are at risk and of course the start-up people if it doesn't catch on....fascinating type of game for sure

Jan...thank you and well shared. That's probably part of the allure. NO taxes!

David...yes to your statement. The allure of the whole thing appeals to the dark nature, the ez peasy part of us...From there, downhill slowly is upon you

 

 

 

Feb 24, 2014 10:29 PM #10
Rainer
147,400
Paul Collier
Patriot Home Mortgage - Huntington Beach, CA
Paul Collier

Seems like the model for a lot of MLM businesses still making the rounds, only you're at least getting an overpriced product for your dollars. If people are willing to take a gamble with those, maybe they ought to legalize these games--at least in Vegas, right?

Feb 25, 2014 03:01 AM #11
Rainmaker
2,447,010
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Hello Paul...I had the same thoughts about Vegas and it would do well there.

Feb 25, 2014 03:03 AM #12
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Richie Alan Naggar

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