Attorney General’s Office Warns South Dakota Consumers to Avoid Illegal Gifting Clubs
PIERRE, S.D. - Attorney General Larry Long is reminding South Dakota consumers that pyramid and gifting schemes are illegal in South Dakota. Long’s Consumer Protection Division continues to receive calls on these home-based business schemes. These illegal programs require an initial investment or gift and promise that the more people you bring into the program, the more money you will receive. These gifting programs operate under various names, but the concept is the same. Initial gifts to invest are anywhere from $2000 to $3600 with promised returns of $16,000 to $20,000.
"If the program that you are looking at requires you give money in order to recruit others into the program then it is a scam," said Long. "The bottom line is that these schemes are illegal and eventually these schemes collapse and people will lose their investments."
Consumers with questions or concerns about these schemes are encouraged to contact the Consumer Protection Division at 1-800-300-1986 or at www.state.sd.us/attorney.