Why do people fall for pyramid schemes? FTC v. Noland offers examples

 FTC v. Noland, 20-cv-00047-DWL (D. Ariz. May 11, 2023)

The decision in FTC v. Noland is notable for its discussion of the testimony of a number of witnesses supporting the defendant who seem to have been largely victims of the pyramid scheme found by the court, but internalized defendant’s messages so strongly that they were unable to see themselves that way. They often didn’t track expenses or even sales in an organized way, so they overestimated their net earnings/didn’t notice their net losses, and seem to have engaged in separate mental accounting of expenses like attending seminars. They didn’t blame the company for losing money and some donated large sums to legal defense for the company and its principals. It gives some depressing insights into how people fall for pyramid schemes and may stay true believers, thinking only that they themselves have failed to succeed.