Iowa Attorney General, Tom Miller, announces the successful banning of a pyramid scheme. Iowans have lost more than $51,000 in a scam in which mailers promised guaranteed income in cash and gold. The victims of Jhon Palacio, a.k.a. Richard Diamond, Sr., of Lake Worth, Fla. were typically elderly Iowans. His mailers said for an investment of at least $750, the recipient would become an independent dealer and they would then receive $250 and a gram of gold every time someone joined the offer. Even though consumers paid thousands to Palacio, no returns were ever received. The Attorney General says Palacio has been ordered to make refunds to the victims and to stop solicitations under a settlement agreement with his office.
