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