Attorney General's News Release

December 27, 2000

Judge orders defendants in pyramid scheme to pay $198,000 in restitution, penalties

Liberty, Mo. — Clay County Circuit Judge David W. Russell today ordered eight Kansas City area women to pay a total of $198,000 in restitution and penalties for their participation in an illegal pyramid scheme. Last week Judge Russell granted a motion for summary judgment by Attorney General Jay Nixon and entered a finding that the Women's Empowerment Network (WEN), also called the Original Dinner Party, was an illegal pyramid under Missouri law.

Today's judgments conclude two lawsuits brought by Nixon against promoters of an illegal pyramid scheme. Additional lawsuits in Clay County, against defendants in connection with WEN and in St. Louis County against defendants in connection with The Original Dinner Party, are still pending.

Nixon said the operators of WEN called it a "gifting tree" or "gifting network." The scheme often took the form of a four-course dinner party, with participants entering at the "appetizer" level and paying $5,000 to the person at the top, or "dessert" level. Appetizer-level participants move up to the "soup & salad," "entree" and "dessert" levels as more participants are recruited at the lowest level. Nixon said these terms and the number of levels may vary from scheme to scheme.

"This order from the court declaring this to be a pyramid serves as a clear and unambiguous notice that these schemes are illegal, and that anyone who participates in them is breaking the law," Nixon said.

The final judgments entered today order:

• Defendant Gayla Dawn Hiatt to pay $25,000 in restitution and a civil penalty of $1,000;
• Defendant Bonnie D. Larimore to pay $30,000 in restitution and a $1,000 civil penalty;
• Defendant Susie Smith to pay $20,000 in restitution and a $1,000 civil penalty;
• Defendant Annette Michelle Willett to pay $35 ,000 in restitution and a $1,000 civil penalty;
• Defendant Staci Lynn Baska to pay a civil penalty of $1,000;
• Defendant Connie J. Balano to pay $40,000 in restitution and a $1,000 civil penalty;
• Defendant Lori Lee Myers to pay $20,000 in restitution and a $1,000 civil penalty; and
• Defendant Kim Adams to pay $20,000 in restitution and a $1,000 civil penalty.

If you think you have been a victim of a pyramid scheme, e-mail us or call the Attorney General's Consumer Protection Hotline at 800-392-8222.

Learn more about pyramid schemes.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

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