Pyramid Scheme through Snail Mail - Beware!

I feel like I’m doing a public service announcement, but really, pyramid schemes boil my blood! During tough economic times like these, desperate people might not look at a deal closely enough to realize it’s too good to be true. The sad thing is, I’m not sure much can be done about the people who have already spent money on this, but the best thing is education and prevention for the future. My letter had 6 names and addresses on it, leading me to believe that at least 6 people have fallen for this.

Then I realized, I can start my own pyramid education by paying it forward. I will tell all of my friends about this, maybe you will tell your friends…and so on and so forth. I think the best way to bring it up is “I can’t believe it, but I received a chain letter through snail mail!” Even if you didn’t, if you make the story more personal, people will believe it - just like all those fake testimonials included with the schemes! =) Education may start at BreakTheChain.org.

Pyramid schemes were popular before internet was around via the postal service (snail mail). Then the internet arrived and the schemes moved to a different medium - emails and web sites. Maybe people are savvy towards suspicious emails nowadays but let their guard down to snail mail? I WAS very surprised and curious to see a personal-looking envelope from names I didn’t recognize.

I retyped the letter below, complete with their spelling errors. I’ve also removed the 6 people’s names and addresses for their own protection. Data Line is a company that sells mailing lists (on convenient peel and stick stickers), and while everybody is spending ~$200 following the instructions and may not see any returns (much less break even) Data Line stands to earn at least $45 per duped person! Data Line claims to be a legit business (their web site is HORRIBLE and cheap looking) and that they shouldn’t be affiliated with any pyramid schemes. Suspiciously this chain letter is telling people to use their service.

I didn’t want to post the name of the company, but no, I figured I should. If you are a company who is genuinely concerned about your reputation, you would post this specific chain letter on your front page and tell visitors not to believe it. You should have an easily accessible email address accepting chain letters that mentions your company, and educate your users as they arrive. Remaining silent while using this pyramid scheme as an advertisement campaign makes you as blamable as the ones who started it. I also hesitated naming the company because I didn’t want to give them free advertisement….but then again I’m bashing them in this post.

I emailed the letter (with the 6 contacts) to spam@uce.gov (email to uce@ftc.gov bounced). From my research, the government will mail the contacts and order them to return any money they received with cease/desist letters, and order them to mail their list the same cease/desist letters - using the chain to stop the growth and try to reverse it. The envelopes, stamps, printing, etc will cost more money in this case, unfortunately. After some time, the government will mail the contacts money, pretending they are a new link to see how the contacts respond. From there they can react accordingly.

In this pyramid scam it states “This is legal, helpful service; see Title 18 Section 1302 and 1342 of the US Postal and Lottery Laws”. The horrible thing is, the law actually says it’s illegal.

Don’t forget to educate your children!

Original mail —————————————————————-

AS SEEN ON OPRAH & 20/20: MAKE $250,000 IN WEEKS
Oprah Winfrey and ABC’s Investigation Team 20/20 — Also proved it can be done
***Proven by various, highly respected U.S. TV and Radio Programs being 100% legal, feasible and true ***
IF A 15 YEAR OLD BOY COULD MAKE $71,000 IN JUST 5 WEEKS AND OTHERS $250,000 IN A FEW WEEKS – SO CAN YOU!!!
THIS REALLY CAN MAKE YOU EASY MONEY!!! IT WORKS!!! BUT YOU HAVE TO FOLLOW THE LETTER FOR IT TO WORK!!! THIS IS NOT A PYRAMID SCAM…This is people helping people!!!

I came across an article similar to this that said you could make thousands of dollars within weeks with an initial investment of only $6.00. The truth is you can expect to spend the following:

• $6.00 paid to the names on the last page of this packet
• $45.00 for 200 peel and stick addressed mailing labels
• $11.00 (est) for 200 envelopes
• $55.00 (est) for 200 sets of this letter copied
• $84.00 for postage stamps @ $.42 each

Your estimated total investment of $201.00
If after reading ALL of the pages you don’t think this is worth $201.00, a small investment for a very large return, then you must be happy with your lifestyle. PLEASE READ ALL OF THE PAGES BEFORE MAKING A DECISION.

Hello Recipient,

I have received the following information and If you will please take the time to read it, I believe that it will be beneficial to you!!!

Dear Friend,

Greetings! I am an Attorney. Approximately two years ago a man came to me with a letter similar to this one. He asked me to verify the fact that this was legal. I told him I would review it and get back to him. When I first read the letter a week and a half later, we met in my office to discuss the issue. I told him that the letter he originally brought to me was not 100% legal and advised him to make a small change in the letter so that it would be legal.

I was still curious about the letter, so he proceeded to explain how the letter works. I thought it was a long shot and decided against participating. However, before my client left, I asked him to keep me updated as to his results. About two months later, he called to tell me he received over $800,000 in cash. I did not believe him. He suggested that I try his idea to find out for myself. I thought about it for a couple of days and decided that I didn’t have anything to lose, so I asked him for a copy of the letter. I followed the instructions exactly, mailed out 200 copies and sure enough the money started arriving! It came slowly at first but after three weeks, I was getting more and more mail than I could open in a day. After about three months, the money stopped coming in. I kept a precise record of my earnings and at the end it had totaled $968,493.00!!!

I was earning a good living as an Attorney. However, as everyone in the Legal Profession will tell you, there is a lot of stress that comes with the job. I told myself that if things worked out, I would retire from my Practice and play golf. I decided to try the letter again, but this time I sent out 500 letters. Well, three months later my income totaled $2,344,178.00!!! I just couldn’t believe it! I met with my old friend for lunch to find out how it worked. He told me that there are quite a number of similar letters like this going around. What makes this one different is the fact that there are six names on my list, not five like many others. That fact alone resulted in many more returns. The other fact is that the whole program is very legitimate. Not one wants to risk participating in something illegal.

I assume by now you are curious to know what little change I told him to make. Well, if you sent a letter like this one out to be legal, you must actually be selling something. If you expect to receive a dollar — I told him that anyone sending a dollar to him must expect to receive something in return. So, when you send a dollar to each of the six people on the list, you must include a slip of paper with the words: “Please put my name on your mailing list.” This is the key to the program.

FOLLOW THE SIMPLE RULES BELOW EXACTLY AND IN LESS THAN THREE MONTHS YOU SHOULD RECEIVE OVER $800,000.00!

Be honest and this will work for everyone. Thank you!

Dear Friend,

My name is Dick Hollman. In October 2003, my car was stolen and my apartment was broken into. Bill collectors were hounding me like you wouldn’t believe. I was laid off and my unemployment insurance ran out. In the following days, I received a letter telling me how I could make $800,000.00 anytime I wanted to! Of course I was skeptical, but because I was so desperate and had nothing to lose, I gave it a try. In January 2004 my family and I went on a ten-day cruise! In February I bought a new Cadillac with cash! Today I am currently building a second home in Southern Virginia, and I’ll never have to work again.

This program works perfectly. I have never failed to make $800,000.00 on each mailing. This is a great business opportunity and a perfectly legal money making program. It doesn’t require you to sell anything or come in contact with anyone. Best of all, the only time you leave your home is to mail the letters and that’s easy!!! I’m sure you could use $800,000.00 in the next 30 to 90 days. Please study this letter carefully. THIS IS NOT A CHAIN LETTER.

RULES
This is a perfectly legal money making opportunity. Essentially, it is PEOPLE helping PEOPLE. Please be sure to follow the instructions exactly as written.

• Immediately send $1.00 to each of the six names listed on the next page and request that your name be added to the mailing list. THIS IS THE STEP THAT MAKES THE PROGRAM LEGAL.
• Remove the name in the number 1 position and move each of the other names up one place (#2 becomes #1, #3 becomes #2, ect [sic]). Put your name in the sixth position (an easy way to do this is to retype or print ona separate piece of paper all six names with yours as the sixth name. Then just tape the new list over the area where the names are shown, and you are ready to photocopy.)
• After completing the above instructions, photocopy or print 200 copies of the letters. Purchase a mailing list of names from Data Line. Data Line is a member of the Better Business Bureau and they only provide names of opportunity seekers like you. They sell a list of 200 names for only $45.00; they also ship the next day C.O.D. for an additional $5.00 fee. The best part is the names come on self-adhesive labels which you just peel and stick right to the envelope. Just call 1-800-497-2912 and they’ll have them delivered to you within 5 days. This company accepts VISA, MASTERCARD, DEBIT CARD, CHECK, or C.O.D. to make it more convenient for you to get started. You can also visit Data Line ONLINE at www.datalineone.com.
• While waiting for the mailing list to arrive, place each of your 200 copies (or more, if you want to make bigger bucks) into business size envelopes and seal them. Go to the Post Office and purchase 200 of their 42-cent stamps & place them on the envelopes (the Post Office sells rolls of 100 self-adhesive stamps for your convenience).
  Once the list arrives, immediately place an address label on each envelope and drop them into the mailbox.

Within 20 to 90 days you should receive over $800,000.00 in cash! Now here is the interesting part…the first time I participated in the program, I kept an accurate count of all my letters and my response rate was 9.5%; and the second time it was 11%. This system was made for the purpose of quickly and easily accumulating capital. Honestly, when you send 200 copies of this letter and each responsive individual sends out 200, your fortune multiplies rapidly. Very few people need to respond for this to work. Remember this is legal. (Refer to Title 18 SECTION 1302 & 1342 of the US Postal and Lottery Laws – found on the Internet).

Please send $1.00 to EACH OF THE FOLLOWING PEOPLE:

(removed)
(removed)
(removed)
(removed)
(removed)
(removed)

Make sure to include a Note asking: “PLEASE PUT ME ON YOUR MAILING LIST”

At a conservative rate of response, assume for example you get a 7% return rate. (My first attempt was about 9.5% and my second was 11%.)

When you send out 200 letters, 14 people will send you $1.00 $14.00
Those 14 people send out 200 letters, 196 people send you $1.00 $196.00
Those 196 people send out 200 letters, 2,744 people send you $1.00 $2744.00
Those 2744 people send out 200 letters, 38,416 people send you $1.00 $38416.00
Those 38416 people send out 200 letters, 537,824 people send you $1.00 $537824.00

AT THIS POINT YOUR NAME IS DROPPED OFF THE LIST; BUT YOU HAVE RECEIVED
********$579,194.00************
I GUARANTEE THE MATH IS CORRECT. YOU CAN CHECK IT YOURSELF!

WITH THIS KIND OF RESPONSE YOU HAVE GOT YO[sic] TRY IT!!!

Here are a few tips I have learned: (merely suggestions)

• After you receive your mailing list, mail the letters as soon as possible while the list is still fresh.
• When you handle a lot of letters an electric opener is great!
• File (or create a database-.xls) your response alphabetically everyday to keep track of your earnings.
• STAY COOL…Keep your job until you have time to plan your next steps.
• Sow 10% of your Income to Charitable Organizations (REMEMBER – you reap what you sow)
• Put 20% into savings; set aside 10% for your next project or mailing list, 10% for bills, 30% for taxes, and 20% to play with. NOT ENOUGH??? MAIL…MAIL…MAIL
• Note: when sending out these letters, you are in the mail order business. People are sending you $1.00 to be put on your mailing list. This is legal, helpful service; see Title 18 Section 1302 and 1342 of the US Postal and Lottery Laws.
• If you tried this system and it failed, it was probably because you mailed them to your friends. NO KIDDING!!! This time get the mailing list labels & SHARE WITH YOUR FRIENDS AFTER YOU HAVE PROVED THAT IT WORKS!