$1k membership - whoa that's big. I got introduced to Ponsi scheme when I was 15yo or about. The entrance fee was 20PLN (~6USD) or 50PLN, I don't recall which, so the lesson was not as costly.

"if it looks too good to be true, probably is" is a great advice. Few years ago in my country, Poland, there was a bank like organization - Amber Gold offering "risk free" deposits at a good few points higher percentage than competition. It was a [big swindle](http://www.thenews.pl/1/9/Artykul/312237,Amber-Gold-pyramid-scheme-used-airline-to-launder-money-commission-head) that many people fell for.