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Chain Letters & Pyramid Schemes

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Chain letters and other pyramid schemes are illegal chain distribution schemes. A chain distribution scheme is any scheme where a person, after making an investment of cash or property, is compensated by soliciting or recruiting others to make similar investments. The early entrants earn the "return" on their investment from the payments made by the later entrants. It is a felony under New Hampshire law, (RSA 358-B), to operate a chain distribution scheme.

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