California Penal Code 327 – Every person who contrives, prepares, sets up, proposes, or operates …
Every person who contrives, prepares, sets up, proposes, or operates any endless chain is guilty of a public offense, and is punishable by imprisonment in the county jail not exceeding one year or in state prison for 16 months, two, or three years.
As used in this section, an “endless chain” means any scheme for the disposal or distribution of property whereby a participant pays a valuable consideration for the chance to receive compensation for introducing one or more additional persons into participation in the scheme or for the chance to receive compensation when a person introduced by the participant introduces a new participant. Compensation, as used in this section, does not mean or include payment based upon sales made to persons who are not participants in the scheme and who are not purchasing in order to participate in the scheme.
Terms Used In California Penal Code 327
- county: includes "city and county". See California Penal Code 7
- person: includes a corporation as well as a natural person. See California Penal Code 7
- property: includes both real and personal property. See California Penal Code 7
- state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the district and territories. See California Penal Code 7
(Amended by Stats. 1989, Ch. 436, Sec. 2.)