‘Be Careful Out There!’ – E-Wealth Report

Alan R. Bechtold has released the latest issue of E-Wealth Report. This featured article is titled “Be Careful Out There!”. [E-Wealth Report]

Alan Bechtold has released the latest issue of ‘E-Wealth Report’ Newsletter.

Be Careful Out There!

Author of Will Work for Fun – 3 Simple Steps for Turning Any Hobby or Interest Into Cash Co-Producer and Star of The FUNdamental You

I’d much rather focus in this newsletter on ways for you to make real money in the real world – online or offline, but this issue I’m focusing on a way to keep your money.

Simply put, I want you to avoid something I’m seeing promoted right now that is, in my opinion (and in the apparent opinion of the FTC, most state attorneys general, and postal officials) an outright scam designed to rip your money out of your pocket by promising huge returns that can NEVER EVER be seen by nearly everyone who participates.

I’m referring to “gifting” programs. And I’m naming names and calling them like I see them here because, frankly, this sort of thing has to be stopped.

The economy is terrible. Many people are desperate. To see people actually promoting this sort of crap and taking what is often someone’s last chance to turn their financial life around, knowing it’s all an outright scam, makes me see red.

Strap yourself in. This ride might get a little bumpy.

I’m amazed to learn that “gifting” programs are still running rampant. YouTube is packed with people waving money into the camera, opening clandestine packages full of cash, proclaiming all you have to do is send a “gift” to someone you’ve never met (of $500 – $3500 cash), by courier (not by mail), to get your own bundles of cash coming right to your door, often within hours, not days.

One such program that particularly caught my eye is being sold right now to countless people who apparently either believe everything they’re being told, or want so very much to believe what they’re being told they refuse to look elsewhere for the facts before diving in.

Many of these people are my clients and readers. I know this because some of the people pitching this outright scam share the same basic audience that I do.

The program is called Perpetual Cash.

I don’t care how it’s painted – this is a gifting program. Thus, it’s illegal in almost every way imagineable.

I’m ashamed of the people who continue to perpetuate what I believe is an outright fraud, sure to land a lot of people in deep s*it when the s*it starts hitting the fan and people don’t receive the money they were hoping they would see come in.

These programs are always, always built upon the concept that the first ones in get rewards. The last ones in (the largest number of people paying the most money upstream) see nothing before it all inevitably collapses.

Do me a favor. Don’t fall for this.

I’ve researched gifting programs deeply and I can tell you they are all illegal, in almost every state. The FTC also considers them illegal federally. Postal officials consider the activity mail fraud, if you use the mail to participate in them.

This is why so many of the operators of these scams have you ship the money you pay to enter the program using FedEx or UPS or DHL or anyone other than the Post Office.

Look close and I’ll bet you’ll find it extremely hard to find someone promoting Perpetual Cash using his or her street address for the shipments – or a post office box. Almost always, it’s a “personal mail box,” which means it’s a rented box in a UPS store or some similar place.

I’ve even heard instructions for sending your money to participate in these programs that go something like this: put your cash payment into an envelope, and wrap the cash in paper first. Then put the envelope inside of a magazine or brochure. Then slide that magazine or brochure into the standard stiff letter envelopes provided by FedEx, UPS or DHL to mail the “gift.”

The instructions I’ve seen even tell you to keep what you’re doing away from the prying eyes of the workers and other people in the courier location where you’re putting this together.

Sounds a bit creepy, doesn’t it? I’m sure there are drug deals going on all over the country with less attention being paid to keeping what’s going on secret.

There’s a reason for this: It’s illegal. Period.

They have everyone jumping through all these hoops because they think avoiding the postal system will make everything work ok.

They also think that, because systems like Perpetual Cash incorporate payouts referred to as “one-up,” this keeps them from being seen by the feds and state Attorneys General as pyramid schemes.

The problem with this logic is the fact that legal authorities consider gifting programs like Perpetual Cash as either a pyramid or a chain. The chain designation, in case you didn’t see it for yourself, covers the “1-up” argument most gifting program promoters refer to as an element that keeps their program from being seen as a “pyramid.”

Sadly for anyone participating, chains (otherwise better known as chain letters) have been illegal since before pyramid schemes were made illegal. Either way, simply participating in the program could be treated by the authorities as a felony.

Even worse, in case after case, when these kinds of programs are brought down by legal action, those who “made out” and actually received money from the program are often forced into bankruptcy when they’re ordered to pay everyone who participated back.

It’s the brutal truth. And you don’t have to believe me.

I found an excellent source of slid, unbiased information about these kinds of programs that I invite you to read for yourself. Consider it a “bonus gift” from me this week.

Don’t worry – I have another gift this week! I’ll get to that in a moment.

Click HERE to go to read about gifting programs.

This site, put together by the author of an excellent book about avoiding scams and rip-offs, includes news reports, press releases issued by attorneys general and the FTC, court documents and much, much more – from all over the world.

Notice as you read how much like these programs Perpetual Cash (or whatever gifting program you might be exposed to) is. They all follow the same pattern. Once you know what they are, they become easy to spot.

Even worse – many people pitching these gifting programs use the IRS tax code to “prove” they are legal. They pull up documents showing that cash gifts of up to $10,000 or $12,000 per year are not taxable – so gifting programs must be legal.

Nothing could be further from the truth. This is just another smokescreen.

First – realize the tax code doesn’t legalize any activity. Under the tax code, prostitutes still owe taxes. So do bank robbers and drug dealers. The fact that they expect their taxes on that money doesn’t legitimize the activity any more than their statement that gifts of up to $12,000 legitimizes a “gifting” program.

According to experts I’ve talked to, the IRS would still consider a gifting program, which you entered with the intention of receiving more money than you put in, as a business and you would owe taxes on any profits generated. It would still be an illegal business – but you would owe taxes on the funds.

These people only show you this because they’re so desperate to try and overcome the fact that what they’re doing is patently illegal.

Forget the money. Do you really want to take this kind of chance with your personal freedom? Are you really willing to risk a felony charge and civil action and more?

Maybe it would be better to put your money to work building a real business for yourself. There are plenty out there.

Meanwhile, if you’ve already sent in your money for this kind of scam, start right now asking for it back. Pull out. It’s never too late.

If the person you sent the money to refuses – report them to the FTC, to your local Attorney General, and to the Attorney General in the state where they reside.

I make nothing telling you this. I only want to see this kind of rip-off stopped now and forever. It’s sad these people would knowingly take your money when they’re smart enough that, if they did just a bit of due-diligence, they would know going in this kind of scheme simply isn’t going to work for anyone but them.

Then CLICK HERE to check out the simple little blog I’ve started where we can discuss programs like this one and other outright rip-offs that need to be stopped.

And – to reward you for your patience digging through all of this, in case it has no bearing on you – here’s something I consider a real value…a complete, brand new, $997 course you can pick up for a limited time, about how to launch a real business. It comes on six DVDs, complete with printed notes, flow charts and more, all mailed right to your door – for just a small postage and handling fee of $29.95.

This is real. It’s a course put together by someone who is really making money online doing what you can learn to do, too…for just a small shipping fee.

I’m amazed at the value presented here and can heartily recommend to you that you get this now, before the 10 days are up and the offer is pulled forever.

I’ll see you next week with a bit cheerier subject, I’m sure.

Alan R. Bechtold

President/CEO

BBS Press Service, Inc.

‘E-Wealth Report’ Newsletter

*IMNewswatch would like to thank Alan Bechtold for granting permission to reprint the latest article.