Free4Life11
DIS Veteran
- Joined
- Apr 26, 2002
- Messages
- 6,688
I'm very confused! I can't find any information as to whether these programs are legal. Most of the time they are referred to as Ponzi schemes, however, there are a few programs that do payout. I've Googled left and right, but the most I can find is tips on how to "avoid these schemes."
The premise is, you open an account, fund the account, surf X number of sites each day (or with HYIP do nothing) and earn X% of what you have funded each day. After a set number of days you receive what you have earned.
Now obviously there is a risk in putting money into these programs as most are schemes and they set up shop for a few days, sucker some people into putting in money, then pack up shop. But what about people who honestly "invested" (though the sites are ALWAYS clear to say it's not an investment as there is no guarantee period) and actually DO earn money??
http://www.usdoj.gov/usao/co/031604Frame1Source1.htm
There's an example of what I am talking about. Now the people who operated the program got caught. But what about the Joe Schmoes who put some money into this program, actually made a return, and then decided not to do it anymore....??
I found out about these programs from a friend and decided to make a very small "upgrade" in one program. Well I've actually made some money from it (not much, $9, on top of what I initially put in). I don't want to be doing anything illegal though. The IRS has got NO information on this. Would it be considered gambling, since it's pretty risky?
The premise is, you open an account, fund the account, surf X number of sites each day (or with HYIP do nothing) and earn X% of what you have funded each day. After a set number of days you receive what you have earned.
Now obviously there is a risk in putting money into these programs as most are schemes and they set up shop for a few days, sucker some people into putting in money, then pack up shop. But what about people who honestly "invested" (though the sites are ALWAYS clear to say it's not an investment as there is no guarantee period) and actually DO earn money??
http://www.usdoj.gov/usao/co/031604Frame1Source1.htm
There's an example of what I am talking about. Now the people who operated the program got caught. But what about the Joe Schmoes who put some money into this program, actually made a return, and then decided not to do it anymore....??
I found out about these programs from a friend and decided to make a very small "upgrade" in one program. Well I've actually made some money from it (not much, $9, on top of what I initially put in). I don't want to be doing anything illegal though. The IRS has got NO information on this. Would it be considered gambling, since it's pretty risky?
