PYRAMID SCHEME TARGETS BUTTE, MONTANA AND SURROUNDING COMMUNITIES
World Ventures appears to be a fraudulent pyramid scheme
The Montana Securities Department has received inquiries and information indicating an investment program entitled World Ventures may be operating in Butte and surrounding communities. The program appears to be a fraudulent pyramid scheme.
World Ventures appears to be operating as a classic "pyramid" scheme, asking investors to put their own money in to get started. ćIt appears that $400.00 is the initial amount required for entry into the scheme. To recover their original funds the investors are required to recruit new participants into the program. Once a participant brings enough new recruits into the program, they climb up the pyramid to a point where they begin sharing in the pool of money obtained from new recruits.
The hallmark of the scheme is the promise of sky-high returns in a short period of time for doing nothing other than handing over your money and getting others to do the same. Generally the fraudsters behind a pyramid scheme go to great lengths to make the program look like a legitimate multi-level marketing program. Despite their claims to have legitimate products or services to sell, these fraudsters simply use money coming in from new recruits to pay off early stage investors.
At some point the scheme gets too big, the promoter cannot raise enough money from new investors to pay earlier investors. The pyramid will collapse and many people will have lost their money.
"One can never be too careful when it comes to money and investments. If someone claims you will get something for nothing you should always be on the look out." State Auditor John Morrison stated, "The best thing and investor can do is investigate before investing."
Pyramid schemes are illegal. Participants in a pyramid scheme that attempt to recruit new members are violating the law and may face administrative, civil or criminal actions against them. If you or someone you know has been approached to get involved in World Ventures or similar programs, please contact the Montana Securities Division at (800) 332-6148.