Internet/Cash Exchange

[Jeff Bush]

I read an E-mail several weeks ago where a gentleman was soliciting $$. Sounded similar to a pyramid scheme but he was insistent that it was legal practice. Basically, your asked to send $1.00 to ten people on a list. After they receive X-# of $ there name is removed & yours moves up to where you supposedly will recieve $$ far exceeding your original investment. He claims that since each person who participates calls the $1.00 exchange a gift the practice is legal.

Does anyone have any idea as to the legality of such activity? If this is legal, can the same thing be done directly over the Internet, i.e., cash transfer labeled gift?

Thanks for the response...J. Bush