Pyramid Scams and Schemes

Discussion in 'Politics, Religion, Social Issues' started by stevento, Jun 23, 2009.

  1. stevento macrumors 6502


    Dec 10, 2006
    Los Angeles
    Listen to my story.
    I needed a job (in Michigan, one of the states hardest hit by the economy), so I decided to go to a job fair. I printed out 20 copies of my resume and passed them out to all the employers that showed up. Basically every employer had a stack of resumes a foot high, and I just went up to each one and piled mine on top. I also posted my resume on craigslist, something I'll never do again.

    I got a call to go to a "job interview" from a person who claimed to have "reviewed my resume and felt I was a great fit for the position." So I get to the location, which turned out to be a conference room at a hotel (first sign it was a scam).
    So I go into the conference room where they are playing music and have a overhead projector set up for a powerpoint presentation.
    So they go through a presentation about what their company calls "Prepaid Legal Services."
    Here's their pitch: Everyone is always suing everyone all the time and with all these afternoon judge shows (judge judy, joe brown etc), law suits are going to happen more and more often because people copy what they see on tv. So instead of paying thousands to an attorney when you need legal representation, pay us about $40 per month and when you need an attorney, we'll give it to you at no cost. It's legal insurance.
    Clearly this is a crock of ****
    But wait, there's more. The person who signed me up would get paid a commission if I decided to join. When i join, I become a "Junior Associate" and as I sign more and more people up, I would move up to Senior Associate, then Manager, then Executive Director. And for each person I sign up, I get a commission, and the person who signs me up gets part of it. And the person who signed him up gets part of it.

    So clearly this is a giant scam. So when I got home, I googled "prepaid legal services" and the suggestions were:
    • prepaid legal scam
    • prepaid legal scheme
    • prepaid legal fraud
    So clearly I'm not the first to call them out on their BS. Has anyone else ever had any experience with this?
  2. Sun Baked macrumors G5

    Sun Baked

    May 19, 2002
    Run from anything that stinks of multi-level marketing.

    multi-level marketing is just another way of saying "Our product is crap, and the only way you can make money is by signing up other people."

    In real life business, who would be stupid enough to put your competition into business to compete against you. With a good product you'd pay thousands to buy the right to keep people within the company out of your area.
  3. rhsgolfer33 macrumors 6502a

    Jan 6, 2006
    There is legitimate legal insurance, but this isn't it. I haven't had this scam happen to me, but I've heard about it.

    I'm reminded of this scene from The Office.
  4. Motley macrumors 6502

    Dec 11, 2005
    Yeah I can get that through my work benefits, pay so much a month and then have a lawyer available when I need one (just not for suing the company).

    First I've heard about this scam. Was there any info on the lawyers supposedly participating in the plan, or was it about signing up other associates?
  5. opinioncircle macrumors 6502a


    May 17, 2009
    That's terrible man. Were there a lot of people?
  6. stevento thread starter macrumors 6502


    Dec 10, 2006
    Los Angeles
    That's the killing part about it. There were about 75 people there and they were totally into it. People kept clapping all the time every time someone said something, and laughing and totally buying into it.
    At the end of the presentation, they sit you down in small groups and try to convince you to buy the service. This is where it gets absolutely stupid, here's their pitch when you're in the one on one group:

    If you ever signed a contract, you need our service. Someone I know went to Wayne State University and lived on campus for the first two years, then decided not to live on campus the third year. He was charged $3,000 for tuition and $7,000 for housing that he didn't want and was told that if he did not pay the full $10,000, he could not return to class. So our legal team sent a letter and got that taken care of and reduced the amount he owed to just the $3,000 tuition. Our service saved him $7,000! The reason the economy is so bad these days is because corporations like Wayne State University are always taking advantage of their customers.

    I just don't understand how people can buy into this. So I first pointed out that Wayne State University is not a corporation, but a publicly funded university. Also he could've handled this on his own with a phone call to their financial office. Then at that point I told him that I knew it was a scam and that I was leaving, at which point I was followed into the parking lot where someone tried to convince me that it was legitimate business. Such nonsense.
  7. opinioncircle macrumors 6502a


    May 17, 2009
    Maybe I'm a little paranoid, but you should make sure not to have left mail addresses, cell phone numbers and such. I mean if they're ready to put a guy on you in the parking lot, these people can send undesired mail and stuffs...
  8. Zombie Acorn macrumors 65816

    Zombie Acorn

    Feb 2, 2009
    Toronto, Ontario
    If it doesn't feel right its probably wrong. If they included judge judy in a business pitch I would be gone. This sounds like a similar deal to all of those car warranty commercials I have been seeing. "Don't worry I have mogi".
  9. szark macrumors 68030


    May 14, 2002
    I've never encountered these people in person, but it does sound like a scam.

    Strangely enough, I just heard about this company the other day while watching the 48 Hours special on this murder case. Apparently they both worked for that company.

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