bcraig commented on Madoff-ravaged Mets enter into a stadium deal with ... AmwayHere's a copy of New York's law concerning pyramids. It might be helpful to compare the Amway plan with the terms of this statute. Perhaps Attorney General Schneiderman might want to see if this is how New York wants to promote the Mets. Article 23-A. Fraudulent Practices in Respect to Stocks, Bonds and Other Securities (Refs & Annos) § 359-fff. Chain distributor schemes prohibited 1. It shall be illegal and prohibited for any person, partnership, corporation, trust or association, or any agent or employee thereof, to promote, offer or grant participation in a chain distributor scheme. 2. As used herein a “chain distributor scheme” is a sales device whereby a person, upon condition that he make an investment, is granted a license or right to solicit or recruit for profit or economic gain one or more additional persons who are also granted such license or right upon condition of making an investment and may further perpetuate the chain of persons who are granted such license or right upon such condition. A limitation as to the number of persons who may participate, or the presence of additional conditions affecting eligibility for such license or right to recruit or solicit or the receipt of profits therefrom, does not change the identity of the scheme as a chain distributor scheme. As used herein, “investment” means any acquisition, for a consideration other than personal services, of property, tangible or intangible, and includes without limitation, franchises, business opportunities and services, and any other means, medium, form or channel for the transferring of funds, whether or not related to the production or distribution of goods or services. It does not include sales demonstration equipment and materials furnished at cost for use in making sales and not for resale. 3. A chain distributor scheme shall constitute a security within the meaning of this article and shall be subject to all of the provisions of this article.
Posted on February 25th, 2013 5:30pm