19.9 C
Byron Shire
May 20, 2024

Pyramid scheme circles sisters

Latest News

Consumer watchdog asked to investigate MasterChef ‘renewable gas’ claims

Claims that ‘renewable gas’ is making MasterChef 'greener' are under scrutiny following a complaint to the ACCC.

Other News

First baby born at new Tweed Valley Hospital

The new Tweed Valley Hospital opened on May 14 at Kingscliff and it saw its first baby born that day at 8.53pm.

Top-down planning failing, says Greens MP

Data released by the NSW government on its key housing policy, the Transport Oriented Development and State Environment Planning Policy, has come under intense criticism from planning experts.

Art of Change raises $40,000

The 'Art of Change' auction, held on Saturday night at the Byron School of Art in support of Mandy Nolan's campaign for the seat of Richmond, was a resounding success. The event attracted 150 people and raised an impressive $40,000 through the sale of donated artworks.

What’s on the Byron Council agenda for May 16?

Items before Council’s meeting on May 16 include a push by two Greens councillors to make Byron Shire beaches accessible to people with disabilities.

Lennox Head tree planting day success

This year celebrated the 19th year of the annual Lennox Head tree planting day along the iconic Lennox Headland that took place on May 10. 

Gas

Living in a modern world I see on social media, etc. world melting, CO2 production associated topics. So having recently...

Pyramid-Scheme-Diagram-1200px

Staff reporters

A classic pyramid scheme has duped a number of women in the northern rivers by cloaking itself in themes of new-age spirituality and women’s empowerment.

Calling upon the power of sisterhood, the ‘Women’s Wisdom Circle’ invites women to part with a $5,000 ‘unconditional gift’ to join as a ‘seed’ with the lure of an eventual $40,000 if they ultimately blossom into a ‘lotus’.

If this sounds too good to be true, it is. The Circle is the latest version of the classic pyramid scam that has been doing the rounds for decades. The schemes inevitably collapse, leaving the vast majority of ‘seeds’ out of pocket.

Similar schemes have operated since the 90s, spreading like spot fires, and it is illegal to originate or even to participate in them.

Echonetdaily attempted to contact the proponents of the Women’s Wisdom Circle yesterday, via their website. Every link on the site that purported to provide a contact led to a ‘page not found’ failure message. Evidently the scheme’s proponents do not want to be found – or found out.

What the Circle promises

An Echo source, who wishes to remain anonymous, was recently invited to join the Circle. An introductory document sent to them via an encrypted email address states: ‘By joining our circle of women you enter a magnified creative field where the art of giving and receiving is balanced and aligned to support the flourishing of our soul’s purpose and deepest heart’s longing’.

Having joined the Circle, a ‘seed’ then recruits two more ‘seeds’ with $5,000 each and grows into a ‘sapling’. The new ‘seeds’ in turn find two more seeds and the sapling ‘blossoms’. After one more round, the original invitee becomes a ‘lotus’ and receives a $5,000 ‘gift’ from each of the eight incoming seeds beneath them, totalling $40,000 (see diagram). The Circle then splits and those next in line wait for eight more recruits before becoming their own lotus.

According to the ACCC website: ‘Pyramid schemes are an illegal and very risky get-rich-quick scheme. In a typical pyramid scheme, a member pays to join. The only way for the member to ever recover any money is to convince other people to join up and to part with their money as well.’

The defining feature of a pyramid scheme, and its relative, the ponzi scheme, is that no actual value is being created. Money from the majority at the bottom of the ‘Circle’ is simply redistributed to the minority at the top – exactly the hierarchical structure the sisterhood wars against.

Why it will collapse

Collapse is inevitable. It is basic mathematics. In order for the first ‘lotus’ to receive their $40,000, eight ‘seeds’ in the Circle must part with $5,000 each.

If each of these seeds is to reach the ‘lotus’ position, 64 new ‘seeds’ must be found. For these to get their payout/gift, 512 recruits (and $2.56 million) are required. Within two more generations the number of recruits would exceed the female population of Byron Shire, and within three more, of Australia. It is inevitable that the scheme runs out of new recruits, and when it does, anyone who has not been ‘gifted’ is left hanging.

The whistleblower resident added, ‘Sadly, it’s generally the well-heeled, well-connected and charismatic women – women who are regarded as spiritual leaders of the sisterhood – who complete their circle and “blossom”. It’s the women who come in late, and often out of desperation, who are usually left hanging. This preys upon trust and goodwill nurtured over decades, throws spirituality onto the pyre, and sacrifices the lot for a quick buck.’

The Women’s Circle is careful to state that the $5,000 entrance cost is an ‘unconditional gift’, made with ‘no expectation of return’. Otherwise, even they admit, the ACCC would crack down.

The Circle’s originators claim that ‘Since the early 1980s, this circle has remained unbroken, and has grown in numbers, strength and integrity’.

Yet identical schemes with different names in the US, UK and Australia have shattered, leaving thousands ripped off and manipulated. It is only a question of time before the same thing happens here.

A revealing report by a woman caught in a ‘Women’s Empowerment Circle’ can be found at:  http://www.realitysandwich.com/womens_circle_pyramid.

Additional resources

Intelligent analysis of why the ‘Gifting Circle’ structure is not a sacred or natural way of distributing resources

A string of articles

An almost positive view

A real gift circle


Support The Echo

Keeping the community together and the community voice loud and clear is what The Echo is about. More than ever we need your help to keep this voice alive and thriving in the community.

Like all businesses we are struggling to keep food on the table of all our local and hard working journalists, artists, sales, delivery and drudges who keep the news coming out to you both in the newspaper and online. If you can spare a few dollars a week – or maybe more – we would appreciate all the support you are able to give to keep the voice of independent, local journalism alive.

1 COMMENT

  1. Please don’t join! I did and although I was funded by a donor, I was duped into further half-backing a woman on my own circle and a woman on another circle because of the pushiness and desperation of the Desserts. My first two Desserts got their $40,000 gift – but they had to back and half-back women in order to make the Circles move. They claimed we could contact the “Senior Sisters” at any time if there were problems. And there were problems. When the group collapsed, only one of the previous Desserts stepped in. We had been in the Circle(s) for 10 months by then. She saw to it that I was half-reimbursed and another woman was fully reimbursed, but she was adamant that no-one should ever contact her again and no surprise, there was no way to reach the Senior Sisters about the remaining $2500 which I do not have. Here’s the reason, my own daughter convinced me to join the group. The half-backing for my invitee went to my daughter. Now, as a result of her jumbled interpretations of mystical thought & “manifesting” she does not feel like speaking to me – at all. What a surprise when you owe someone money. Now, I love my daughter to pieces. That’s why I joined the Circle. But this really hurts. When I joined, I had been in a nearly fatal accident & could not walk or work all year. Could ill afford giving this money. Please out these charlatans, or force the “Senior Sisters” to respond!

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stone & Wood wins at Australian International Beer Awards

Stone & Wood Brewing are proud to announce a big win at the Melbourne Royal Australian International Beer Awards held last night, with the brewery’s Big Pale Ale taking home the title of Champion Australian Beer. Big Pale Ale also took out the Best Australian Pale Ale category.

Cabarita Beach powers up with new EV fast charger

The future of sustainable transport is rolling into northern NSW with the opening of a new electric vehicle fast charging station at Cabarita on the weekend.

Wombat burrows provide critical shelter for other species

A new study, published in the Journal of Mammalogy, found wombat burrows help other animals by providing critical shelter for numerous species following severe wildfire, and may even be an important source of water.

Hundreds of DV arrests across state

Police have charged more than 550 people during a four-day operation targeting the state’s most dangerous domestic and family violence offenders.