Legal Question in Business Law in New York

I Would Like Some Help, Please.

I have a question pertaining to an opportunity I am looking at getting involved with. I answered an ad on an online site and the email reply I received stated that the idea behind this opportunity was very simple. First I would need to set up a primer or business paypal account so that I could send and receive payments. Next I would need to send $1 to the 6 different paypal accounts that were listed in this email, making sure I titled each of the sent payment emails: PLEASE AD ME TO YOUR LIST. Next I would wait for instructions and I assume I would then start putting ads out in the different online classified ads. However my email address would now be on the list at #6, the former #6 becomes #5 etc. In the introductory email that was sent to me I was told this was absolutely legal and that it appeared on the Oprah Winfrey Show. I have seen this ''opportunity'' advertised around the internet and have hesitated to get involved. It sounds like a gifting program. If it does happen to be legal and I get paid based on how many people get involved with this opportunity and send a $1 to my paypal account, How Are Taxes taken out of the money sent to my paypal account? Do I have to register as a small business owner? Thank You


Asked on 5/03/07, 7:01 am

2 Answers from Attorneys
Charles Williamson Charles J. Williamson, Attorney At Law

Re: I Would Like Some Help, Please.

Its illegal. Its a variation on what's known as a "Ponzi" scheme, named for the person who first devised it.

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Answered on 5/03/07, 12:47 pm
Kristen Browde Browde Law, P.C.

Re: I Would Like Some Help, Please.

That's absurd. What you're engaging in is a chain letter/Ponzi scheme. It's illegal.

And no matter what the e-mail said, it was never on Oprah. It was never any place legitimate.

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Answered on 5/03/07, 8:45 am


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