Susu scams In contrast to traditional susus (in which participants only receive the money they put in without profit), these schemes promise a profit. Additionally, these scheme promise rewards for recruiting more people to the susu, in effect making it a pyramid scheme.
Is a sou sou a pyramid scheme?
The scheme might be called a “blessing loom” or “sou-sou.” But the name doesn’t matter — it’s an illegal pyramid scheme that’s stealing credibility from legitimate sou-sous in which members aspire to help one another save for a specific purpose and nobody receives more money than they put in.
Is a susu legit?
It’s also the greatest form of “scammery.” That’s why scammers are imitating a type of informal savings club known as a “sou sou” or “susu” to trick people into joining what amounts to an illegal pyramid scheme. This way of saving is based on the honor system, and it is not without risk.
Can you go to jail for blessing loom?
A “Blessing Loom” may sound like a highly beneficial program or even a sacred object. But it’s nothing of the sort. It’s a pyramid scheme and a scam that could draw you into an illegal involvement, which could, in turn, land you in jail.
Is Susu legal?
A chain-mail solicitation by any other name, ‘blessing loom’ or ‘sou-sou,’ is against the law, officials say.
Is the Susu Flower illegal?
Prosecutor Tyner warns that despite guarantees by scheme promoters, these Pyramid Schemes called Sou-Sous, Flowers, or Gifting Circles are illegal. Individuals, participating in the scheme could face charges of wire fraud, tax fraud, and theft by deception.
Is gifting money legal?
If cash gifting schemes argue that you will receive payment, this is illegal per IRS guidelines for cash gifting. Any cash gifting schemes cannot require members to do anything based on their cash “gifts”. This means that those who you give money to are not required to give anything back in return.
Is a susu legal?
A chain-mail solicitation by any other name, ‘blessing loom’ or ‘sou-sou,’ is against the law, officials say. Eliza Briscoe was told that all she had to do was put up $500 and bring in two additional people who would each contribute the same amount of money.
What is a gifting pyramid scheme?
Gifting clubs are illegal pyramid schemes where new club members typically give cash “gifts” to the highest ranking members. If you get more people to join, they promise you will rise to the highest level and receive a gift much larger than your original investment.
What makes a pyramid scheme different from a Susu?
Scammers have set up pyramid schemes which imitate or pretend to be susus. In contrast to traditional susus (in which participants only receive the money they put in without profit), these schemes promise a profit. Additionally, these scheme promise rewards for recruiting more people to the susu, in effect making it a pyramid scheme.
Is there such a thing as a Susu?
From Wikipedia, the free encyclopedia A susu or sou-sou or asue (also known as a merry-go-round) is a form of rotating savings and credit association, a type of informal savings club arrangement between a small group of people who take turns by “throwing hand”, as the partners call it.
Is the sou sou really a pyramid scheme?
Like so many others being recruited for a “sou-sou,” Briscoe was nearly duped into a pyramid scheme. It’s hard not to be sold on the altruistic and cultural backstory of the sou-sou, also known as “Susu,” “blessing loom” or “gifting circle.”
What does Susu mean in the wrong box?
Susu is a method of pooling savings in parts of West Africa and the Caribbean Famed 19th-century writer Robert Louis Stevenson dedicated an entire novel, The Wrong Box, to ‘Tontines’, a once widely practiced form of group life insurance. Each member of the Tontine paid a sum into an investment fund and later received dividends from the earnings.
