Seems this question has been coming up a lot lately in different circles. Have you seen the guy on youtube opening the fedex packages full of money? Or have you seen all the ads floating around saying "This gifting program is legal". Some call it 'leveraging'.

Some want to get involved and then ask, "why does it have to be such a big secret?" And yet it seems that it's not all that big of a secret considering you can google 'gifting' and find hundreds of sites.

Gifting money in a "CLUB" is NOT legal.. at least not in the US. If you wonder why gifting monies have to be shipped via UPS, FEDEX or some other form than standard post office delivery, it's because sending these monies through the mail violates Title 18, United States Code, The Postal Lottery Code.

Here's the scoop, straight from the Federal Trade Commission site.....

"Don’t Get on the Receiving End of a Gifting Club "Gotcha"

Promises of quick, easy money can be a powerful lure – especially when it comes with the additional benefit of new friendships.

If you’re approached about joining a club but you aren’t sure if it’s an illegal gifting club, the Federal Trade Commission reminds you to:

• Consider that a legitimate gift has no strings attached and is not an "investment."
• Avoid being misled into thinking a gifting club is legitimate because the ads say that members consider their payments a gift and expect nothing in return. This is an attempt to make an illegal transaction look legal.
• Be wary of success stories or testimonials of tremendous payoffs. Very few members of illegal gifting clubs or pyramid schemes ever receive any money.
• Take your time. Don’t buckle under to a high-pressure sales pitch that requires you to join immediately or risk losing out on the opportunity. Remember, solid opportunities – and solid friendships – aren’t formed through nerve-wracking tactics."

Get caught gifting for profit could be the first step in being charged for participating in an organized crime shceme and COULD land YOU in jail.

~just a word for the wise... Don't get involved. Online gifting sites stay alive on the internet for a variety of reasons, but the biggest one is that no one reports them. If you’ve been victimized by a gifting club promoter, contact your local Consumer Protection Agency, State Attorney General and Better Business Bureau. You can also file a complaint with the FTC. Don't write it off as a big mistake... stop these scammers.

~jennifer

UPDATE: Just found this little ditty of information on MLMWATCHDOG.com - "PYRAMID SCAM ALERT - LEARN!5 Mar 2008- Here is a pyramid scam to learn from. Anytime you see Fedex or UPS being used exclusively, learn that the scamsters are doing this to avoid the U.S. Postal Inspectors putting handcuffs on them. They steal your money by using non government money transfers. Look, learn and avoid.... and most of all, run! Now from the website name you might think they are cocaine dealers. No....! They are just stupid scam artists! What a name! The post office investigators may not get them, but the DEA may break their door down! http://www.receiveyoursnow.com/ "