The Police Department has recently learned of a new pyramid scheme targeting women called "Women Helping Women." We want to send out a warning right away. Please do not be fooled by the " gifting " terminology, the exclusive invitations, or the quick return promises. Your money is hard-earned; be careful with it!

A "Women Helping Women" scheme has been identified as being in operation in the county of San Joaquin. It is believed to be currently in operation in several other area counties. It may be called " Women Empowering Women," " The Dinner Party,"
" The Gifting Club," "Women Gifting Women," or
"Circle of Friends."

Regardless of the name given, pyramid schemes are illegal. It is usually implied or stated the scheme is perfectly legal and has been approved by an attorney; however, there is no verification submitted for this claim. In fact, it has been represented by promoters of such schemes that the Attorney General has declared the scheme legal. These assertions could not be further from the truth. According to the Office of the Attorney General of the State of California, "Every person who contrives, prepares, or operates any endless chain is guilty of a public offense which can be punished by imprisonment in the county jail not exceeding one year or in state prison for 16 months, or two or three years." (Click here for more information from the Attorney General's Office.)

If you participate in this type of scheme you'll see that they quickly collapse, leaving many with little chance of recovering their money. This is just a con game, preying on people's belief that they can make money quickly.

Pyramid schemes are illegal in California. They are a form of theft. It is mathematically impossible for everyone who enters to recover their investment, let alone make a profit. It is inevitable that at some point there will not be enough new recruits to the scheme to pay back those who have paid.

Organizers of the schemes typically avoid referring to them as pyramids and are unlikely to provide detailed descriptions of the exact process by which the money is made.

In the Dinner Party scheme, individuals are invited to the table. Guests are solicited for as " little" as a few hundred dollars or as much as $5,000 (at the "appetizer" or "soup and salad" level). At the "dessert" level, they promise an inflated payoff, and guests are enticed with stories alleging a profit is returned within as little as a month. In order to achieve the promised profits, a continuous chain of participants must be recruited. That is what makes this an illegal pyramid. The scheme soon runs out of new participants and the house of cards comes tumbling down. California Penal Code Sections 327 and 484 prohibit endless chain and pyramid schemes.

Remember, don't be fooled by the "Women Helping Women" scheme or any other pyramid scheme or endless chain. Hold on to your hard-earned money!