LIHUE — The pyramid scheme known as “Women’s Gifting Circles” or “Women Empowering Women Circles” is making a comeback, according to officials. While this particular pyramid is not a new phenomenon in Hawaii, the scheme has been active in recent
LIHUE — The pyramid scheme known as “Women’s Gifting Circles” or “Women Empowering Women Circles” is making a comeback, according to officials.
While this particular pyramid is not a new phenomenon in Hawaii, the scheme has been active in recent months, according to County Prosecuting Attorney Justin Kollar. He cautioned the public to be on the lookout.
“These schemes are marketed as a way to entice women through a tiered-investment model, often using language that speaks in terms of ‘empowering’ women spiritually or financially,” Kollar said. “The people at the top of the pyramid collect money from those at the bottom of the pyramid, plain and simple.”
The people at the bottom are promised future rewards based on recruiting additional followers to start new circles, Kollar adds. These schemes are illegal and are designed by predators to extract money from people who trust them.
In many cases, women who are being recruited are told not to talk about the circle for various reasons, or are told that the practices are legal as long as the dollar amounts are under a certain threshold. However, violators can be subject to criminal and civil penalties under state securities laws.
