TVI Express: illegal under CA "endless chain" law

Image by Bearman2007 via Flickr

What is endless chain? It's the original name for the Ponzi scheme, but is also related to the Pyramid. Basically, as long as you recruit more than the people leaving, people leaving can enjoy a "profit". In other words, the latercomers are paying the early goers.


So what does the CA Penal code say?

CA Penal Code 327: Endless Chain Scheme

"Every person who contrives, prepares, sets up, proposes, operates any endless chain is guilty of a misdemeanor. As used in this section, an 'endless chain' means any scheme for the disposal or distribution of property whereby a participant pays a valuable consideration for the chance to receive compensation for introducing one or more additional persons into participation in the scheme or for the chance to receive compensation when a person introduced by the participant introduces a new participant. Compensation, as used in this section, does not mean or include payment based upon sales made to persons who are not participants in the scheme and who are not purchasing in order to participate in the scheme."

Let's see, "participant pays valuable consideration ($250 or whatever) for the chance to receive compensation ($250+$250 evoucher, then $10000+whatever evoucher, for 2 separate boards) for introducing one or more additional persons into participation of the scheme (you need to recruit two people) or for the chance to receive compensation when a person itnroduced by the participant introduces a new participant (and teach those two people each to also recruit two people each).

Fits TVI Express to a T, no pun intended! 


So keep that in mind: if you recruit for TVI Express in California, you can be charged with a misdemeanor!

What does YOUR state's laws say about "endless chain" or "pyramid scheme"?

Why is TVI Express NOT an endless chain / pyramid scheme? Can you explain THAT?

Why should you NOT be charged with a misdeameanor, if you're in it?