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ryamcarthur
Member
Joined: 14 May 2008
Posts: 2
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# Posted: 14 May 2008 02:10
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I have been hit up recently to join many cash gifting programs. They are all very informative and they have lots of people holding and receiving lots of money.
I am wondering if they are legal? Do they really work? What type of program or version is better than another?
Any thoughts or ideas would be greatly appreciated!
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Homeboy
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Joined: 4 Feb 2008
Posts: 147
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# Posted: 14 May 2008 11:04
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Cash gifting = chain letters, right? 
In that case, I believe they're illegal..... or maybe that depends on which country you're in? 
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GavinStephenson
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Joined: 24 Apr 2008
Posts: 60
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# Posted: 14 May 2008 17:39
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If your unsure don't do it, thats what I say. if you have to ask then its not right for you.
go with you inner feelings
joining a business should me like getting married. you have to love what your doing love your product love the people. anything other than that really isnt worth joining
Cant make money with something you dont like except at job
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mountainmom5
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Joined: 30 Aug 2007
Posts: 754
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# Posted: 15 May 2008 00:11
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GavinStephenson: joining a business should me like getting married
In some cases it's only till debt do us part - lol
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freecashhappens
Member
Joined: 21 Apr 2008
Posts: 41
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# Posted: 15 May 2008 00:45
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I don't know if there legal or not. I don't trust them...There are better ways to make money then giving yours away, I do know that. Do your research and see what comes of it. Follow your guts and heart.
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cashgift1000
Anonymous
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# Posted: 14 Jun 2008 02:47
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There is nothing ... i repeat nothing illegal about cash gifting. If cash gifting was so illegal you would not be able to go on youtube and see thousands people showing their faces and sharing telephone numbers while advertising. I've done all my research. cash gifting is completely legal guys. Law states I /you can receive up to 12,000 from anyone as gift and it is NOT taxable. Cash gifting has been a blessing for my family and I . I've only been in for a little over 5 months and i have made over 40k. If cash gifting is illegal, they have thousands of cash gifters to put in Jail
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getagrip
Preferred Member
Joined: 20 Feb 2006
Posts: 1269
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# Posted: 14 Jun 2008 04:36 � Edited by: getagrip
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Just go to ripoffreport.com and see what comes up for cash gifting.
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CSGWAHM
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Joined: 30 Dec 2006
Posts: 273
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# Posted: 14 Jun 2008 16:05
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I would stay away from the gifting programs. You can make alot of money with a home based business, go for that instead of doing something unethical. I belong to another work at home site and there was an interesting link regarding cash gifting programs. I want nothing to do with them, although I do get emails about these programs.
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cupbucket
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Joined: 7 Jun 2008
Posts: 48
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# Posted: 17 Jun 2008 17:37
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I warn you that if you use paypal in order to get the money it could be dangerous. If paypal finds out they could freeze your account and you wouldn't (as far as I am aware) be able to get to your money. Paypal doesn't like these programs. For my business I use Alertpay.
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HiAchiever
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Joined: 21 Apr 2008
Posts: 19
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# Posted: 20 Jun 2008 10:27
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Perhaps you've seen the ads with all those FedEx envelopes.
Every wonder why cash isn't sent through the US mail? Even registered US mail?
Using the US mail service to carry out a ponzi or pyramid scheme is illegal.
Think of the old chain letters with five names and addresses on them. You send cash to each of the five addresses, then move the names down, adding your name at the top and dropping off the last name. Then you send out a bunch of letters hoping people will send you money.
This is illegal and if you use the US mail to carry out this type of scheme you could be in real trouble.
What's the difference between chain letters and cash gifting?
The only difference is there is only one name on the letter (or post card, or web site). Once you pay the person at the top, you are authorized to send your ads out with your name at the top. It's simply a one person chain letter.
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TheMarketer
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Joined: 22 Jul 2008
Posts: 3
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# Posted: 22 Jul 2008 04:41
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Hey new here, how are you...saw this post and thought I could help. thanks....
I can honestly say they are legal. I talked with my CPA and my attorney before I joined one. Now there only two things one would need to worry about is this....the monthly costs they'll put on ya to make your calls or do your autoresponders for the emails, ask them what the charges are for them to run it??? There is one that's great, and it's only $27 a month...not to shabby. Just be careful and ask lots of questions...another good question would be if they have a min. first cash gift you must give to get in or set up.
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JRice1223
Member
Joined: 27 Jul 2008
Posts: 5
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# Posted: 27 Jul 2008 02:15
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Cash gifting programs are illegal. They are in violation of the Federal Trade Commission. Most of these programs are generated outside of the U.S. practically try to launder the money through U.S. banks to get you to send the money to someone in another foreign country. Most of the time, these can and will send fake checks that look real for you to go to the bank and cash and send money to someone while taking "your cut". It is not legit, it is illegal. I would steer clear! Hope this helps. Cheers!
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discrat
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Joined: 30 Jan 2008
Posts: 26
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# Posted: 27 Jul 2008 18:11
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Yeah I can tell you this any State DA would definitely say that Cash Gifting is TOTALLY ILLEGAL !! There are just too many for these for DAs to pursue in a viable manner.
You have to have some kind of Good or Service in exchange for Money. Otherwise its considered a Pyramid or Ponzi Scheme.
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TJamMoneyMan
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Joined: 11 Nov 2007
Posts: 470
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# Posted: 29 Jul 2008 21:12
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Hello everyone,
I personally am 100% ignorant of cash gifting.
I don't practice it or promote it.
But one thing I notice, is that no one has posted the LAW that cash gifting supposedly violates.
Precisely which statute is cash gifting in violation of?
And who has ever been prosecuted for violation of that law by their practice cash gifting?
Not cases where cash gifting was used as a cover, or a front for some other illegal activity, but who has been convicted where CASH GIFTING solely and particularly was the offense?
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TJamMoneyMan
Member
Joined: 11 Nov 2007
Posts: 470
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# Posted: 29 Jul 2008 21:15
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HiAchiever: Think of the old chain letters with five names and addresses on them. You send cash to each of the five addresses, then move the names down, adding your name at the top and dropping off the last name. Then you send out a bunch of letters hoping people will send you money. This is illegal and if you use the US mail to carry out this type of scheme you could be in real trouble. What's the difference between chain letters and cash gifting? The only difference is there is only one name on the letter (or post card, or web site). Once you pay the person at the top, you are authorized to send your ads out with your name at the top. It's simply a one person chain letter.
For example, when you look at the statute concerning chain letters, they are NOT illegal UNLESS the US Mail is used in the process.
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TheMarketer
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Joined: 22 Jul 2008
Posts: 3
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# Posted: 29 Jul 2008 21:41
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That was my thought when I first saw this convo...but, well being new I really didn't want to ask it. Thank you and if someone could really let me know this, that would be great. I looked high and low...all over tons of different opps on the net. This is the first one that I liked....looking forward to more answers.
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LordAlan
Member
Joined: 27 Jul 2008
Posts: 13
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# Posted: 30 Jul 2008 02:55
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so then is it illegal in all of US or just some states?
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TJamMoneyMan
Member
Joined: 11 Nov 2007
Posts: 470
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# Posted: 30 Jul 2008 10:27
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I went to the trouble of downloading and printing that article.
It is one helluva read online!
Mainly because I was getting confused because as I skimmed along because I was reading about different cases without realizing it.
As I result, I was getting a bit mixed up about who was being charged with what.
And it's not clear to me what the verdict of these court cases was solely concerning the gifting issue.
It's one thing to be charged...
That being said, I think it would have been an easier read to have a clear cut definition of what a pyramid is presented a little earlier.
There were so many cases, and names among the different articles.
Information overload I guess.
I did see one state mention an 'endless chain' law, which is a good description of a pyramid plan.
And I guess I didn't realize that ALL gifting schemes are pyramid in nature (?).
If this is true, then gifting is illegal anywhere a pyramid scheme is illegal, plain and simple.
But the article did point to things that would indicate 'gifting' is indeed a pyramid, and fraudulent:
Like it takes 8 people to pay one.
That the ONLY source of income is money provided by NEW RECRUITS.
There is absolutely NO product whatsoever.
When the pyramid recruiting stops for WHATEVER reason, ALL new recruits will be out of whatever money they put in, since there are no more new recruits coming in to pay these previous new recruits.
The longer the pyramid scheme continues, the more new recruits there will be GETTING RIPPED OFF, because they are the last group of new recruits.
Because this is the very structure of a pyramid - small at the top, HUGE at the bottom!
Because the more the pyramid grows, the larger the bottom becomes!
This last reason is why ponzi schemes, pyramids, and chain letters are illegal in the first place.
LOTS of people WILL get ripped off in the end.
As in, there is no possible way will the last group of newbies can ever get paid.
The last group of recruits are ALWAYS left with nothing to show for their 'investment'.
Not even a garage full of nutritional supplements!!
Now, if any 'gifters' can refute this...?
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TJamMoneyMan
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Joined: 11 Nov 2007
Posts: 470
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# Posted: 30 Jul 2008 10:31 � Edited by: TJamMoneyMan
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HiAchiever: The only difference is there is only one name on the letter (or post card, or web site). Once you pay the person at the top, you are authorized to send your ads out with your name at the top. It's simply a one person chain letter.
Pardon me for quoting you once again HiAchiever but, isn't there more than ONE name on a gifting ad?
Or is it that you only pay ONE person - the one at the top?
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Successteamnva
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Joined: 17 Aug 2008
Posts: 2
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# Posted: 17 Aug 2008 20:20
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I recently joined a gifting program and from what I know, gifting is legal as long as everyone follows the rules. I myself gave willingly and have received as well. Do your homework, there are some programs fueled only by greed! Don't believe the hyped up videos either. There is no get rich quick opportunities, and gifting is not one of them. But, one can do well in them if you work at it.
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3Brothers
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Joined: 21 Aug 2008
Posts: 1
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# Posted: 21 Aug 2008 16:08
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This was the first thing that came to my head when I first heard of this activity: this can't be legal. But to my surprise, it is, in fact, a legal activity, here's why.
In researching this activity, I learned that both American and Canadian citizens have the Constitutional right to gift property, cash and other assets. The U.S. gifting rules are found in the IRS Tax Code, Title 26, Sections 2501-2504 and 2511.
The law states that one or more individuals can give a gift to another individual of up to $12,000 each per calendar year without any tax liability to either the giver or receiver of the gift, because the tax on the gift has already been paid. These gifts are not included in the gross income of the recipient.
It is NOT pyramidal, but linear in structure. There's no "fat cat" at the top benefiting from others. A person starting today can easily generate more money than someone that's been in a year. Copy cat programs in the past were closed because of this illegal structure, which we are NOT.
I also found that most well organized Cash Gifting programs use a Gifting Statement and Non-Solicitation form, which when signed, are binding agreements between two individuals. These forms are used, it's said, to ensure the longevity of a program.
Now, I'm not here to paint a rosy picture and tell you that ALL Cash Gifting programs are legal. Certainly there are some that are not. Unfortunately, there are "old school" Cash Gifting programs out there that weren't structured properly in order to sustain their efforts for any considerable length of time, and some of them use an illegal pyramidal type of structure. Consequently, copy cat programs in the past were closed because of this illegal structure and gave Cash Gifting a bad reputation.
However, in recent years, with the creation and development of the linear "1Up" structure, things have changed and more and more people are benefiting through the use of these types of programs than with any other Cash Gifting structure in the World.
With a 1Up type of Cash Gifting program, there are no fancy sounding "positions" to sell, no "matrix" to fill, and there's no ever-widening base to the structure (In a typical illegal pyramid, only those at the top profit while those at the bottom never reach the top and invariably lose their money).
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brentw
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Joined: 1 Aug 2008
Posts: 7
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# Posted: 21 Aug 2008 17:28
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Cash gifting is illegal.
Plain and simple.
First, understand that a ponzi scheme is what this is moreso than a pyramid scheme...although either would apply here, the ponzi has the most accurate definition.
Lets talk about it in these terms:
A ponzi scheme is any scheme in which new investors (i.e. gifters) have to be brought in to pay those already in. This creates an endless need for new investors which will eventually crumble, leaving many people who will receive nothing. This is part #1 where it is illegal.
Here is part #2: It has nothing to do with U.S. Mail vs. FedEx (although this is another issue altogether), but it does fall into the enticement laws of many states. In short, if you are enticing someone of investing (or giving) in hopes of return, then you fall into these laws. Sames goes with business opportunities. The only difference is, with a legitimate business, you have actual products that are being sold or services being paid for.
So why are these people posting their face with all this money on YouTube?
They are ignorant of the laws, but that will not exclude them from being prosecuted if it draws the right regulatory attention.
With that being said, lets look at the lies that gifters like to tell:
1. It is legal to give up to $XXXXXX to someone as a gift.
Yes, it is legal...if you are expecting no return. Besides, this has to do with tax reporting. The laws gifting schemes violate deal less with taxes and more with consumer fraud.
2. It is legal as long as everyone follow the rules:
Well, here's my test for you: Take your name, address, how you are doing the gifting program, and go to your state Attorney General. Lay out the full plan to them. Tell them that you send a gift of $X amount to someone, and then you look for others who will give you $X amount (or to someone else within the program), and so forth. Explain exactly how you gave the money in expectation of receiving the money.
And if you are apprehensive about doing this, I'd advise you quit what you are doing and find something honest and reputable to do.
Still need proof?
Regardless of what you think of Rod Cook, he has a resource on his website talking about gifting schemes...what I am posting here is a link to external news stories about people being arrested, fined, etc, for running and/or participating.
If you can read this and still feel good about what you are doing, then you have no right to complain when the government takes your house, your cars, seizes your bank accounts, etc (its called forfeiture, you should read up on it).
http://www.mlmwatchdog.com/Resources_Gifting.html
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