Woman Arrested in Pyramid Scheme

A West Los Angeles woman was arrested Wednesday on charges of swindling $6,000 from three people in a pyramid game, an illegal investment scheme that prosecutors say is on the upswing.

Jeanne Dakota Sal, 32, was taken into custody at her home by police, then booked at the West Los Angeles police station on six misdemeanor counts of grand theft and running an illegal chain scheme. Sal remains in jail on $10,000 bond.

Investigators said Sal operated a game called “Friends Helping Friends” that promised players a $14,000 return on a $2,000 investment, said Los Angeles Deputy City Atty. P. Greg Parham of the consumer protection unit. Players also were promised that they could receive a refund at any time.

The investors were also supposed to continue recruiting investors for the game. Informational materials given to potential players said investors would be “giving a gift to a friend.”

But a woman who could not get her money back complained to Parham, sparking an investigation that turned up two other investors who also did not get any return on their $2,000 investments.

The three victims began investing in the scheme last November, and recruiting was done at pyramid parties at Sal’s home and the home of an acquaintance, Parham said. Most of the investors lived in West Los Angeles.

Parham said that although the pyramid investment games are illegal and only organizers ever see any profits, their popularity is rising. The games go by various names including “Friends Helping Friends,” “Amigos Ayundando Amigos,” and “The Platinum Club.”

“The city attorney has repeatedly warned the public about getting involved in these types of get-rich schemes,” Parham said. “They need to realize that they could be prosecuted much like the defendant in this case.”

If Sal is convicted, she faces a maximum $1,000 penalty and a year in County Jail on each charge.