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From: rjn@hpfcmp.UUCP (rjn)
Newsgroups: net.invest
Subject: Re: Orphaned Response
Message-ID: <16900001@hpfcmp.UUCP>
Date: Sun, 30-Jun-85 02:03:00 EDT
Article-I.D.: hpfcmp.16900001
Posted: Sun Jun 30 02:03:00 1985
Date-Received: Sat, 13-Jul-85 15:39:12 EDT
References: <213@nicmad.UUCP>
Lines: 16
Nf-ID: #R:nicmad:213:hpfcmp:16900001:37777777600:851
Nf-From: hpfcmp!rjn    Jun 29 22:03:00 1985

re: latic culture scam

CNN did a half-hour segment on one of these flimflam  outfits.  They concluded
it was not a "pyramid"  scheme  (endless  hierarchy  of  "distributors"),  but
rather a "Ponzi" scheme.  The money paid out to early investors ("growers") is
all coming  from later  investors - and not from  resale of the  cultures  for
actual products.

CNN  attempted to trace the cultures  being bought from the growers.  Although
the vendor  claimed that it was all going to a beauty supply  manufacturer  in
CA, it appears that it all actually gets reprocessed into "starter kits" which
are sold to new growers.

Regards,                                                Hewlett-Packard
Bob "wanna buy some USENET bonds?" Niland               3404 East Harmony Road
hplabs!hpfcla!rjn                                       Fort Collins CO  80525