Pyramid Scheme Clips Third Man Can’t Believe Charges, Says He’s Willing To Repay

A Coeur d’Alene man became the third person to be charged with a crime for participating in a pyramid scheme that swept through Kootenai County in April 1994.

Dan Edwards, 25, was charged Wednesday with participating in an illegal money-making scheme that eventually involved more than 400 people in North Idaho and Eastern Washington.

But Edwards said Wednesday he had no idea at the time that the pyramid, called the “Unconditional Giving Matrix,” was illegal. He said he immediately turned himself in to police when he found out.

“I’m not the type of guy to do anything illegal,” he said.

To take part in the scheme, people paid $1,500 to the person at the top of a 15-space pyramid matrix. For that money, they got a spot at the bottom of the pyramid.

They were then supposed to recruit others to join the pyramid. As the pyramid’s spaces were filled, the person at the top was to receive $12,000. Participants were told they, too, eventually would rotate to the top of the pyramid and rake in thousands of dollars.

The pyramid scheme crumbled after news spread that it was illegal. Police told participants they must return the money.

Lt. John Bassett said Edwards has not repaid several people. Edwards said he hasn’t been able to pay them back because he hasn’t been paid back by others.

“I am more than willing to pay,” he insisted. “I’m even willing to get a loan to pay it back. I’m totally willing to do what it takes.”

Edwards said he feels he is being singled out for prosecution, even though many other people were involved. “I can’t believe I’m charged with a felony.”

The crime Edwards was charged with carries a maximum penalty of five years in prison.

Ken Detherage was the first to plead guilty to the crime, in exchange for the charge against his wife being dropped. He was sentenced to a year of probation.

, DataTimes