Has anyone had any run-ins with Gifting Tables? Here is a Connecticut (USA) article about the Connecticut Attorney General warning about this new scheme:

[www.nhregister.com]

In tough financial times parasites come scrawling out of the woodwork.

Here is a telling piece FTA:

Those entering on the bottom level are called “appetizers,” and bring such food to each week’s meeting for as long as they remain in that position. Those on the next level are “soups or salads,” and bring one of those dishes to gatherings. Next are the “entrees,” and finally, the woman on top of the chart receiving money is the “dessert.”

Tuesday’s group previously used this system, but recently began using college class ranks of freshman, sophomore, junior and senior instead. Some women were referring to themselves as junior sisters.



Yeah, the top parasite is certainly enjoying her "Desserts". Hope they get some desserts in jail.



Edited 1 time(s). Last edit at 03/22/2010 12:56AM by Sparky.

This is another bit FTA posted at the link above:

Gifting circles, which right now are only targeting women, are rampant along the Shoreline. Women involved also confirmed that Barbara Hamburg, a Madison resident who was slain March 3, was a member of a local table. There is no indication her membership played any role in her death.

Law enforcement officials and fraud experts said women nationwide are joining gifting tables at higher rates than ever to battle the emotionally and financially taxing effects of the recession and to find a sense of belonging. The gifting table may be wonderful for a while, officials said, until the table’s legs collapse.



YIKES! Someone was murdered!? Who knows...maybe an "appetizer" was pissed off at a "dessert"!

If any of you get links in your local paper's internet sites please copy and forward for us all. This appears to be a rapidly growing problem. Read the article (long as it may be) and be aware of the threat this poses to your friends and loved ones.

Perhaps the "Gifting Tables" will soon be shut down in Connecticut as the Attorney General is looking into them:

[www.nhregister.com]


FTA:

Attorney General Richard Blumenthal says the tables, which women join for $5,000 in hopes of making back $40,000, violate the state’s contingent transaction statute and unfair trade practices act, while also breaking federal statutes. He says he is continuing his investigation of the tables.

“You’ve got Blumenthal saying one thing and cops saying another. Are we under different laws in Guilford?” the resident, who declined to give his name for fear of retaliation by people involved in the tables, continued.

After buying in for $5,000, women meet each week with their tables, bringing new recruits and sharing plans and ideas for their big payouts. They insist what they’re doing is legal, and say the tables are support systems, calling each other “sisters.” However, Blumenthal and a national expert on pyramid schemes say the tables can’t continue indefinitely because they will eventually fail to draw new members. And those at the bottom of the pyramids will get nothing.




Edited 1 time(s). Last edit at 05/03/2010 11:25PM by Sparky.

Here is a newspaper editorial claiming that (surprise!) "Gifting Tables" are Ponzi Schemes.

[www.newhavenregister.com]

While this editorial only slightly moves the arguement forward, it appears that the Connecticut AG is looking into a civil case (suing the Gifting Tables members) and also possible criminal charges.

This is a "comment" from the comments section which bears re-posting here. It is a comment by a member of a "Gifting Table" that really loves the damn thing and explains how the thing is done and why, she believes, it is completely legal:

Sarah wrote on May 13, 2010 9:16 AM:

" I can't speak for all of these groups, but the one that I am involved in works very well. It works in a similar manner to amway or other multiple level marketing companies, which are perfectly legal. As I tell everyone I recruit, as long as you participate in the meetings and gift swaps and can recruit two people, you'll make your initial investment back. You start to make money for each recruit over two. I personally know this works! I've made about $60,000 in about six months. And, if you get a business license, you can take all of your car and gas expenses off on your taxes, if you use your car for the business.

The only people who I've seen lose money are those who inexplicably join, and then don't do anything. I don't believe that there is any business that you can do with no effort and no time. This one, though, works great for those who actually work. I'm on pace for another $10,000 this month; my goal is to double that, but my goal is elusive. "



Commenters after her posting suggest she is engaged in tax fraud as well.
See here:



kma wrote on May 13, 2010 10:06 AM:

" So Sarah, you are not only a con artist and thief but also a tax cheat. Please provide your full name so the IRS can be promptly notified.

BTW, MLMs ARE illegal if they don't have a product. Amway gets away with it because they do sell products. It sounds like your only product is gullibity. You must be very proud of yourself ripping off your friends. "




She comments again later in the comment thread, but this basically sums it up.

You will be happy to know that I flagged Sarah's comment to the New Haven Register and suggested they retain the ISP address for State's evidence in the investigation.



Edited 3 time(s). Last edit at 05/17/2010 06:18AM by Sparky.

Here is some more information from Michigan from a year ago. Apparently the name "Gifting Table" is a new moniker. "Gifting CIRCLES" is what they seem to be known by in other venues. A Google Search of Gifting Circles gets a lot of hits going back at least to 2001.

[www.connectmidmichigan.com]


From the comment section of the above link:

I was at a pitch
Posted by Almost a Victim, Grand Blanc - Saturday, January 10, 2009 at 12:05 p.m.

I would like to not reveal my identity, but I attended one of these parties and listened to the pitch. The entire time they kept talking about female empowerment and women helping women, which are both great things. The pitch was very convincing and they did twist the law around quite a bit to make it sound legal. But I believed then as I do now that it was a scam and that I would much rather invest my money then give it away.
The thing that annoys me most is that if this is truely female empowerment, they why are women falling for this scam, commiting felonies with out knowing it and being victims of other women who bring them into the circle?






If you have any new info on GIFTING CIRCLES (or tables) in your area please update me.

Thanks.



Edited 1 time(s). Last edit at 05/17/2010 08:44AM by Sparky.

UPDATE: It appears that Connecticut is building a case against this MLM scheme:

[www.nhregister.com]

Here is another article (albeit a bit late in my posting).

[www.nhregister.com]

I have contacted the reporter on this story by email and asked when other updates are forthcoming.

Here is a new article on how the Connecticut Gifting Tables are still going strong despite a State probe into their illegality:

[www.shorelinetimes.com]

When will people learn?

FOLLOWUP:

A New Haven Grand Jury charged 3 women in the Connecticut Shoreline Pyramid Scheme known as "Gifting Tables".

Each has been charged with conspiracy to defraud the IRS; 4 counts of filing a false tax return; 12 counts of wire fraud and conspiracy to commit wire fraud.

EACH FACES 20 YEARS IMPRISONMENT & FINES UP TO $250,000


Here is the link to the article, including a scanned document of the Grand Jury findings:

[www.nhregister.com]


I will keep the RI community up and current with this and the resulting fall-out and (probable) convictions.

I think an important "take away" from this article, if you do a crime, don't e-mail back and forth about it with your co-conspirators (aka IDIOTS).