Cash Gifting

Well hello everyone! It has been a while since I wrote anything. I have been very busy lately with work and stuff. I wanted to talk about a program that you may see all over the net called "Cash Gifting". Basically it involves people sending "gifts" of cash in the mail to someone hoping to get other gifts in return. I have heard mixed things about these programs. Some people say that it is a total scam, others will say that its not a scam but you need to invest thousands. Either way I am not willing to take that risk. I also have noticed that with some of these cash gifting companies they are affiliated with companies that are overseas..... that's interesting. Maybe they have bank accounts in different countries to protect them from getting seized by the FBI? With these types of programs you may ask "Is this legal"? Well the whole "gifting" definition from the IRS makes this money non taxable. However, that does not mean just because the money isn't taxable doesn't mean its legal either. This to me sounds like a "Ponzi" scheme. A Ponzi scheme definition from Wikipedia is "A fraudulent investment operation that pays returns to separate investors from their own money or money paid by subsequent investors, rather than from any actual profit earned. The Ponzi scheme usually entices new investors by offering returns other investments cannot guarantee, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors to keep the scheme going". Now when you look at that definition it sounds just like this "Cash Gifting". Also sounds like some of these Multi Level Marketing programs. There are so many of these illegal tactics going on so they can't all be regulated by the authorities. Now if a person makes as much money as Bernard Madoff made then they will get caught. However, look at how long it took for Bernie to be caught. Just need to always remember "If it sounds too good to be true, it probably is". That is always the truth in my book.