(1) It is hereby declared unlawful for any person to establish, promote, operate, or participate in any pyramid distribution plan.
(2) A limitation as to the number of persons who may participate or the presence of additional conditions affecting eligibility for the opportunity to receive compensation under the plan does not change the identity of the plan as a pyramid distribution plan nor is it a defense under this section that a participant, on giving consideration, obtains goods, services or intangible property in addition to the right to receive compensation.

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Terms Used In Kentucky Statutes 367.832

  • Intangible property: Property that has no intrinsic value, but is merely the evidence of value such as stock certificates, bonds, and promissory notes.

Effective: July 15, 1986
Created 1986 Ky. Acts ch. 184, sec. 2, effective July 15, 1986.