Women’s Wisdom Circle Scam
Here is how the scam works:
Each women “gifts” $5,000 to the woman leading the circle (at “Dessert” level), after the woman at the Dessert level receives $40,000 from the newcomers she leaves the circle. The group splits and the two women below her move into the “Dessert” position, each taking half the circle members. The woman who left the top has the option to reinvest in either or both circles. The two new “circles” then need to recruit eight new members at $5,000.
The gardening themed gifting circle makes “Soil” the entry position, while “Harvester” is at the top of the pyramid.
Women’s Wisdom Circle Scam Alert Video:
In August 2013, a federal judge sentenced Donna Bello and Jill Platt, both of Guilford, Connecticut, to multiple years in prison for running a dinner party-themed pyramid. The women – convicted of wire fraud, filing false tax returns and conspiring to defraud the Internal Revenue Service – were also ordered to pay $32,000 in restitution.
These schemes are promoted as gifting programs intended to empower women and claim to adhere to IRS gifting rules. Women are encouraged to keep their involvement secret and are required to sign a statement that the money they pay is a gift, with nothing expected in return.
These statements are false and do not make participation legal, regardless of what potential recruits are told. You are not helping other women by bringing them into these scams. You are hurting them.
Unlawful pyramid schemes collapse, hurt people financially and are a crime! – Source Ag.idaho.gov