WASHINGTON – Derek Loom who started the “Blessing Loom” made over 10 million by promising Facebook users $800 if they can refer two other people to the scheme. Along with that, the user needs to deposit $100 from the start all the signs pointed to a classic ponzi scheme.
Authorities believe Derek Loom started his scheme with a few people who were looking for extra money during the holiday season and were easily tempted by the “Blessing Loom” they jumped on the idea of making extra cash doing nothing after receiving their $800 the scheme blew up and everyone wanted in, but the scheme grew so fast that some of the people scammed wanted to invest $100,000 for a 80% return and that’s when the scam really blew up.
Derek Loom had less money coming in he decide to keep the remaining amount for himself and take a run from it. But Authorities were outside his door.
Like any ponzi if you get in early you will profit its the people who get in last that pay the bill. Derek Loom has not been charged but will be tried for running this elaborate scheme.