The 2023 Florida Statutes
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§ 849.091(1), Fla. Stat. (2013).
cause of action. Consequently, Count IV is dismissed. F. Count V (Violations of Florida Statute § 849.091(2)) In Count V, Plaintiffs seek a declatory judgment against the Developer on the grounds that the
The decision in Adams does not support Mr. Croy's contention in the present case that the misdemeanor provision addressed to pyramid schemes, section 849.091, removes pyramid schemes from the purview of the general lottery statute, section 849.09, altogether. The explicit language in section 849.091(1) declaring that pyramid schemes ("organization of any . . . pyramid club") are lotteries places pyramid schemes within the ambit of the general felony lottery statute, excepting only such conduct as the misdemeanor statute proscribes itself.
Affirmed. §§ 849.091, 501.203(3)(c), Fla. Stat. (1997);see Federal Trade Comm'n. v. American Standard Credit Sys., Inc., 874 F. Supp. 1080, 1090 (C.D. Cal. 1994).
Also prohibited as lotteries are pyramid clubs where something of value stands to be gained from participation in the scheme. Section 849.091, Florida Statutes 1971, F.S.A., provides:
We held in Frye v. Taylor, Fla.App. 1972, 263 So.2d 835, that the above described relationship between the defendant and the so-called directors was a plan or device in violation of F.S., § 849.091, F.S.A. In our opinion, that holding is equally applicable to the above described relationship between the defendant and its supervisors. It would appear to us that the relationship between the defendant and its supervisors and directors falls within the following operative provisions of § 849.091:
The appellants, Doyle Conner, the Commissioner of Agriculture, and Rom W. Powell, County Solicitor of Orange County, Florida, filed a civil action in the Circuit Court for Orange County, Florida, against Glenn W. Turner, Glenn W. Turner Enterprises, Inc., and Dare To Be Great, Inc. The complaint sought among other things a temporary and a permanent injunction prohibiting defendants from operating a plan or scheme allegedly in violation of F.S. Section 849.091, F.S.A. (which prohibits chain letters, pyramid clubs, etc.). The complaint alleges that defendants operate a business which involves the sale of personal motivation courses. Such courses are allegedly sold in four parts and under a sales plan whereby a person who buys the third or fourth part of the course may ". . . sell and enroll other persons and receive a commission for such sale or enrollment." The appellants' legal theory is that this sales program violates F.S. Section 849.091, F.S.A., and, therefore, those who conduct it are guilty of maintaining a nuisance as defined in F.S. Section 823.05, F.S.A., and are subject to injunction under F.S. Section 60.05, F.S.A.
F.S. Section 849.091, F.S.A., sets forth the type of "pyramid club" or "chain letter" which constitutes a lottery:
In my opinion, the factual allegations set forth in Counts I and II of the complaint are sufficient to show that the respective contracts between the several plaintiffs and the defendant, Koscot Interplanetary, Inc., a Florida corporation, are severally void under F.S. Section 849.091, F.S.A., or voidable under Chapter 517, F.S.A. Such would support an action for restitution. I therefore concur in the conclusion that Counts I and II of the complaint are sufficient to state a cause of action against the corporate defendant, Koscot Interplanetary, Inc., and in the conclusion that the remaining counts of the complaint are insufficient to state a cause of action in favor of any of the appellants against any of the appellees.
In my opinion appellant's "plan of operation" contravenes the pyramid club statute, F.S. § 849.091 F.S.A., as construed in the Childress case; but I do not think it constitutes a security within F.S. Ch. 517 F.S.A., under the reasoning of the Gallion case, which involved "Alabama's similar securities law." I would therefore affirm as to the alleged lottery violation, and reverse as to the alleged securities violation.
. . . . § 849.091(1), Fla. Stat. (2013). . § 849.15, Fla. . . .
. . . .” § 849.091(1), Fla. . . . contention in the present case that the misdemeanor provision addressed to pyramid schemes, section 849.091 . . . The explicit language in section 849.091(1) declaring that pyramid schemes (“organization of any ... . . . the pyramid club or mere solicitation to join, both proscribed by the misdemeanor statute, section 849.091 . . . Section 849.091(1), Florida Statutes (1999), addresses any chain letter club, pyramid club, or other . . .
. . . . § 849.091(2) (West 1998); Miss.Code Ann. § 75-24-51(5) (1998); Mo. Ann. . . .
. . . . §§ 849.091, 501.203(3)(c), Fla. Stat. (1997); see Federal Trade Comm’n. v. . . .
. . . the defendants’ method of sales distribution is a pyramid or chain operation which violates Section 849.091 . . . Section 849.091, Florida Statutes 1971, F. . . . defendants’ sales scheme would have to be proved by the state to find the defendants in violation of Section 849.091 . . . Section 849.091, F.S.A., and was at least adequate at this stage to state a cause of action. . . .
. . . . § 849.091, F.S.A. and that plaintiffs’ contracts with the defendant were securities for purposes of . . . relationship between the defendant and the so-called directors was a plan or device in violation of F.S., § 849.091 . . . the defendant and its supervisors and directors falls within the following operative provisions of § 849.091 . . .
. . . Section 849.091, F.S.A. (which prohibits chain letters, pyramid clubs, etc.). . . . These are critical factual issues on which the application of Section 849.091 depends. . . . Section 849.091, F.S.A. . . .
. . . was given in consideration of participation in a transaction declared to be a lottery under Section 849.091 . . . Section 849.091, F.S.A. and that the note sued upon for participation in such illegal transaction is . . . Section 849.091, F.S.A., sets forth the type of “pyramid club” or “chain letter” which constitutes a . . . lottery: “849.091 Chain letters, pyramid clubs, etc., declared a lottery; prohibited; penalties. — The . . . Section 849.091, F.S.A. . . .
. . . Section 849.091, F.S.A., or voidable under Chapter 517, F.S.A. . . . ”, (described in the complaint) “is believed to be and therefore alleged to be violative of Section 849.091 . . . alleged scheme as described in their complaint constitutes a pyramid or lottery as prohibited by Section 849.091 . . . purchasers constituted a pyramid club under the facts before the court and was in contravention of Section 849.091 . . .
. . . . § 849.091 F.S.A., as construed in the Childress case; but I do not think it constitutes a security . . . maximum of 3000 participants prevents this scheme from being a pyramid club forbidden by Florida Statutes 849.091 . . .
. . . That definition is found in §849.091, Florida Statutes, as follows — Chain letters, pyramid clubs, etc . . .
. . . . § 849.091, F.S.A., as part of the statutory law of Florida, and which is as follows: "Chain letters . . .