Nation: California Scam

Illegal pyramid clubs flourish

As instructed, the suburban housewife parked near the toy store in Van Nuys and waited. Soon an orange van drew up. "Chart 2," she mumbled to the driver; she was invited to join the van's eight other riders. In a few minutes, the vehicle rolled up to a warehouse. More passwords were exchanged, and the van's riders then blended with the 150 or so people already gathered inside. Promptly at 8 p.m., the doors were locked, and the host rose to address the guests.

Thus began another session of what its adherents call the "business concept list," but what...

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