NCJ Number
169487
Date Published
1996
Length
3 pages
Annotation
This article reports on a pyramid scheme which occurred in Japan in the early 1990s.
Abstract
Data were collected from a non-random sample of 160 victims of a pyramid scheme run by a company that sold water purifying devices. The scheme lasted about two years and recruited approximately 10,000 persons. More than half of the victims surveyed were male; 74.4 percent were between 20 and 30 years old; most participated as a side business; 36.3 percent were invited or recruited by alumni of their school; and 32.5 percent were recruited by colleagues in their workplace. The victims' motives for participating in the scheme paralleled recruitment representations: high earnings, participation in goods and services, and making dreams come true. The mean amount of damage suffered by the victims was US $3,000, which comprised a membership fee and charges for goods purchased. Half of the victims paid with money borrowed from a credit company or loan shark, debts and high interest which had to be repaid even after the scheme collapsed or the individual left the scheme. Besides financial damage, victims incurred mental or social losses; 41.3 percent expressed regret for having caused trouble for friends, 20 percent expressed disgust with themselves, 4.4 percent lost their principal jobs; and 3.1 percent fell ill. References