Legal Question in Technology Law in New York

Re: Are online matrix programs legal?

Although I have never seen a matrix program like this before, I know that similar programs have been deemed illegal in the United States. The matrix program seems to work like a pyramid or ponzi scheme in that members recruit other members to kick in money, which flows up the recruitment chain to earlier members. The problem with these types of systems (and what therefore makes them illegal) is that there will always be those members at the bottom of the pyramid that never see a return on their investment. You can read about similar online programs that the U.S. Government considers illegal by visiting the FTC's website at http://www.ftc.gov/bcp/menu-internet.htm