Money Matters

So the other day I received my first Chain Mail scam. Through Snail Mail too!

Basically it is the letter that starts out as though it is written by an attorney, stating all of the reasons why this particular chain letter is legal. Then all you have to do is buy a mailing list from a legal source (200 people), photocopy the letter making change only to one section, the section with the names of 6 people. (By moving #6 to 5, 5 to 4 and so on... removing the old #1 and adding yourself to #6) then mailing the letter with the new names to the 200 people from the mailing list you bought. then you send out $1 to the old #1-#6.

Now, in theory: This system works. However, because you are taking a chance that any of the 200 people who's names you bought don't follow through with it it is seen as Lottery Via Mail (Very Illegal). Earlier versions of this letter at least as far as I am aware of have been ruled against in court as far back as 1972 (for what I have found).  Apparently though the general ruling of Chain Letters being illegal go as far back as the Great Depression.

I had found a forum on Hoax Museum where this type of letter has been talked about (In one thread) for the last 6 or so years.

I feel bad for the people that end up getting caught in the middle of this that have no clue to it's legality status. It also bums me out that because there are so many predatory people out there that use this as a means of control that it became illegal in the first place. To a point, this system follows very much a "Pay it Forward" mentality.

Now: Those of you that are saying that this is a Pyramid Scheme or a Ponsi scheme... No. It doesn't follow the logic of either of those two systems. For it to be a ponsi scheme, the money would have to be requested up front, then disappear into the night, but it is theoretically being sent to previous participants of this system.

For a Pyramid Scheme the person at the top would have to ALWAYS make more than the person at the bottom... Well, tell me: How does that work on a cycling system, where one person on a list is only ever there for 6 iterations of the letter? It doesn't. One person has a cap that they can ever make, and that cap is the same for the person at the beginning of the list as it is for the person at the end of the list (In Case your Curious: if there was a 100% return, then one person would have the potential of $64,000,000,000,000.... Most of these letters say that you will get about a 7% return, or about $800,000).  Some people have reported more, many have reported less... Mainly because many people are skeptical and check it out first.

So, lets change it up a little: I don't want to hear about weather or not this letter is legal (I will delete comments to that nature), but lets assume that this system WAS legal... Would you follow through with it if you got this letter? I know of at least one person that would, as I believe I would myself. I believe that it is because of the questionable legality that so many people do NOT make use of this.