Pyramid Schemes

State Attorney General Mike Beebe is warning Arkansans today against pyramid schemes that are operating statewide and disguising themselves as gift clubs.

Beebe said the clubs bill themselves as eager to help new members, but actually require them to put in money for higher ranking members.

He said the schemes usually collapse before the new members see any money.

The schemes attract new investors by appealing to church groups, neighborhood gatherings and recruiting friends and family.

The clubs have attractive names such as ``The Friendship Investment Club'', ``Freedom Club'' or ``The Spirit of Giving.''

The one that is currently going around Arkansas is known as ``The Last Program''.

Beebe suggests that Arkansans avoid being misled and check out the clubs first before joining.