Cash Gifting, Here we go again, any QUESTIONS?

 Hello Friends, 

My friends and Mentors Bob and Anna Bassett get the credit for creating this wonderful overview of Cash Gifting programs.

There are many still out there who are misinformed about these illegal pyrimid schemes, and I can only hope this will clarify the dangers in participating in these kinds of illegal activities. 

Thanks for giving it your time and appreciate any comments.

Paul

Is Gifting a Scam? Part 1 Snapshots of Gifters

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We’ve just had another Skype conversation with a gifter who advertises on YouTube with a video of his wife opening up the FedEx envelope, taking out the magazine, opening the magazine to an envelope, and then opening up the envelope to show hundreds of dollars in cash.

She then proudly displays the cash to the camera with her face in full view.

Now that shows confidence and pride in a system. Or perhaps they just want to make it easier for the Attorney General to recognize them when they come to their door.

The video then goes on to show a snapshot of hundreds of worshippers at a large rally, and then fades to a painting of Jesus. We’re not sure of the logic involved here, and never got into it in our conversation.

It spurred us to post part of a letter we sent a few months ago to a gifter who tried to recruit us and rationalize her involvement. If you are approached by a gifter, you might ask a few questions:

• If this is legal, why is the money sent disguised as a magazine or book in a Fedex or UPS envelope? Our guess is that using US or Canada Post would make it a federal offence rather than simply a state or provincial crime.
• If this is legal and you plan to claim it at tax time, why could you not accept a check or bank transfer?
  
• If this is legal, would you take the plan to the OAG (Office of the Attorney General) or Industry Canada to discuss it with them just to make sure you’re okay? So far no one has taken us up on the challenge.
• If this is legal and ethical, why do we not see any contact information on your website, and why is this ‘by invitation only’?
  
• If you still think this is legal, would you consider it to be moral? You are accepting money from people and giving nothing in return. Like any pyramid, there will always be people ‘at the bottom’ who are out of pocket and are guaranteed to be hurt.
• If you truly believe that you are giving from a position of pious generosity, you will have no problem at all sending us a few thousand dollars with no strings attached. Here’s our PayPal account. We’ll be glad to piously accept your gift in the generous spirit in which you sent it. Thank you very much. Polish your halo and prepare to enjoy your place in Heaven.

Gifters will argue that nobody they know has been charged.

Bear in mind that there are thousands of scams out there, and government investigators are tremendously overworked and understaffed. They can only go after a few cases per year and must make sure they have solid cases so as not to waste the taxpayers’ money.

Also please consider this chunk of logic …

The fact that it has not been shut down and exposed yet does not make it legal.

For example, John Dillinger robs a bank and is on the run for a year. During that year that he has not yet been caught, bank robbing has not been declared legal. John Dillinger just hasn’t been caught yet.

By the way, after a civil discussion with the husband last night, we woke up to an angry indignant Skype message left by his wife, written all in caps. Just another reminder of how gleefully people will kill the messenger!

Below is the comment we included with our original letter.

We have contacted the OAG for NJ and the Competition Bureau of Industry Canada for more information. Please stay tuned …

Bob and Anna Bassett
519-371-1028
Skype bobbassett
bobandanna@togethertothetop.com

PS To learn how to tell a scam from a good
five pillar company, read the free ebook
Success in Ten Steps by Michael Dlouhy.

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Gifting One Up
A Comment by Bob and Anna Bassett

Alice gets an idea for a gifting program,
thinking she has found a loophole in the
tax laws.

Alice convinces Bill it’s a good idea.
Alice tells Bill this is a Gifting One Up
and asks Bill for $1000.
Bill gives Alice $1000 and Alice accepts it.
Alice gives Bill permission to duplicate.
————————————
Snapshot 1:

No goods or services have changed hands.
Nothing has been reported to the taxman.

Alice now has +$1000 and Bill has -$1000
People with a gain = 1
People with a loss = 1
——————————————
Bill asks Carol and Dave and Ellen to join the plan.
Carol, Dave and Ellen each give Bill $1000.
Bill gives Carol and Dave and Ellen permission
to duplicate the system.
——————————————
Snapshot 2:

No goods or services have changed hands.
Nothing has been reported to the taxman.

Alice +1000
Bill -1000 + 3000 = +2000
Carol -1000
Dave -1000
Ellen -1000
People with a gain = 2
People with a loss = 3
———————————————–
(Note that money has passed from three
pockets into two pockets. From C, D, and E’s
into A and B’s.)

Now Carol, Dave and Ellen think this is a good idea
and each of them invite two other people.
Carol invites Fred and Gail and takes their money
and gives them permission to do the same.
Dave invites Harry and Irene and takes their money
and gives them permission to do the same.
Ellen invites Jack and Karen and takes their money
and gives them permission to do the same.
———————————————–
Snapshot 3:

No goods or services have changed hands.
Nothing has been reported to the taxman.

Alice +1000
Bill -1000 + 3000 = +2000
Carol -1000 + 2000 = +1000
Dave -1000 + 2000 = +1000
Ellen -1000 + 2000 = +1000
Fred -1000
Gail -1000
Harry -1000
Irene -1000
Jack -1000
Karen -1000
People with a gain = 5
People with a loss = 6
————————————————–
Note that no matter how you vary this scenario,
some people are gaining while others are losing.
Some might call it gifting. Some might call it theft.
A, B, C, D and E like the system. F, G, H, I, J, and K
are not so sure yet.

The taxman and the police definitely do not like it.

At this point, everyone files their tax return.
A to E do not report this activity because, after all,
it was a gift!
F to J do not report this activity because they plan to
receive gifts in the next tax year and not report them.

Karen, however, misunderstands the magnificence and
the pious generosity of the system, makes a mistake
and reports her gift to Ellen as a tax loss.

… or …

Karen figures it out, gets upset that Ellen now has $1000
of her money that Karen could have used to pay rent or
feed the kids, and reports the situation to the police.

The taxman or the police investigate, and audit and/or
arrest and question all eleven people.
——————————————————
Snapshot 4:

Fred, Gail, Harry, Irene, Jack and Karen have been audited,
perhaps arrested and questioned. Their pictures have
appeared in the local newspapers and their names have
been mentioned on local radio. They may still be out
$1000 each.

Alice, Bill, Carol, Dave, and Ellen are found guilty of tax
fraud and are fined heavily and/or taken away to jail.
Their pictures have appeared in national newspapers
and television and their names mentioned on national
radio. They are now felons and lose their jobs as
accountants, lawyers, teachers, mayors, or executives.
They may have to move to a different town, and as
felons, they can’t travel to Europe with their families.
———————————————

Note that no matter how large this grows, there are ALWAYS people ‘at the bottom’ who have given money and have received nothing in return.

That is called THEFT or FRAUD.

The ‘gifting’ system is designed to hurt people.

That’s why it is IMMORAL and ILLEGAL.

Gifters are often otherwise honest people who have become desperate and greedy for whatever reason. They are too sensible to rob a bank, so they set up gifting programs to take your money in a quieter, more exciting, and more fun way!

They disguise the theft in accountant’s terms, and assure you that it’s legal and ethical and even spiritual! “It’s better to give than receive”, notmentioning that they intend to later receive much
more than they have given.

Gifters will use phrases like “the spirit of giving”, and “good deeds return to you tenfold.”

They will tell you that people are free to do what they want with their money and can “freely, knowingly, willingly, and happily give it away”.

Likewise, the police can freely, knowingly, willingly, and happily come and take you away …

———————————————
Snapshot 4:

Three gifters freely, knowingly, willingly, and happily go to jail. Check the smiles as they get their fifteen minutes of fame.

Click on the handcuffs for the full story at MLM Watchdog.

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