Wrap – Don’t Drink the Kool-Aid
Sis. Rose Kenebrew
Sis. Karen Smith
7 August 2014
Ponzi Schemes
How It Works
 Framework of a Ponzi scheme can be applied and
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reapplied in countless contexts.
Scheme revolves around the process of paying old
investors with the money you get from new investors.
Central method remains the same.
All one has to do is hook a few investors who are
willing to get in early on a once-in-a-lifetime business
venture.
The details of the investment don't matter too much
The Trap – Wash, Rinse, Repeat
• After the schemer has convinced a handful of investors to fork over money,
those funds can bankroll a nice car -- or, if the schemer is truly sneaky, he or
she can use it to rent office space and buy some fancy furniture.
• These props will help con the next round of investors. Now, he or she is ready
to find more investors. This time, the schemer takes a slice off the top for
himself or herself and uses the rest to pay off the first rung of investors with
some initial returns.
• Eventually, the second rung of investors will need its payout. This is a simple
matter of wash, rinse and repeat: The money from a newly recruited third
rung of investors can pay off the second rung and deliver more returns to the
first rung
Bottom Falls Out
 But as the cycle goes on, it gets more complicated.
 Earlier rungs of investors will get suspicious if they
don't continue to see returns.
 New investors will have to be paid back their initial
investment, and the schemer will have to appease
them with regular returns.
 This means that new investors will have to be added to
the Ponzi scheme continuously in order to pay all the
previous rungs.
Bottom Falls Out
 The schemer is under an enormous amount of
pressure to keep adding investors, and one person can
only do so much. (This is why the most successful
schemes typically involve accomplices, but this merely
delays the inevitable.)
 The scheme will eventually become unsustainable.
The upside-down house of cards the schemer has built
will finally collapse.
Scenario - Paul
Paul and his wife have good jobs. However, Paul has a lot of
debt, including back taxes. He has student loans, car and
house debt.
In desperation, he decides to utilize the an economic and
investment plan recommended from his pastor.
Several members of his church are using the same economic
plan.
The Plan
1) 1st Plan enables Paul to avoid paying all taxes and
repayment of bills.
He attended a few seminars
2) Paid some fees for CDs, paperwork and legal advisors.
1)
2) 2nd Plan involves Paul initial investment of $500
given to his pastor. Paul receives $150 for every
person he gets to invest $500 to the pastor’s
economic plan. He will receive $150 for each $500
donated for the rest of his life as long he keeps
getting other investors.
Scenario - Paul
 Paul donates money to the church and helps a lot of
people with the money he saves.
 He has never been contacted by the FBI regarding use
of this financial plan.
Analysis According to the Word
Deuteronomy 15 - Jubilee
 1At the end of every seven years thou shalt make a
release.
 2 And this is the manner of the release: Every creditor
that lendeth ought unto his neighbour shall release it;
he shall not exact it of his neighbour, or of his brother;
because it is called the LORD's release.
Mercy and Forgiveness
 And forgive us our debts, as we also have forgiven our
debtors. (Matthew 6:12)
Analysis According to the Word
Ecclesiastes 8:11-13
 11 Because sentence against an evil work is not executed
speedily, therefore the heart of the sons of men is fully
set in them to do evil.
 12 Though a sinner do evil an hundred times, and his
days be prolonged, yet surely I know that it shall be
well with them that fear God, which fear before him:
 13 But it shall not be well with the wicked, neither shall
he prolong his days, which are as a shadow; because he
feareth not before God
Analysis According to the Word
 Re: Repayment of bills and debts
 “Better is it that thou shouldest not vow, than that thou
shouldest vow and not pay” (Ecclesiastes 5:5)
 Re: Paying Taxes
 20 And he saith unto them, Whose is this image and
superscription?
 21 They say unto him, Caesar's. Then saith he unto them,
Render therefore unto Caesar the things which are
Caesar's; and unto God the things that are God's.
(Matthew 22:20-22)
Analysis According to the Word
There are legal methods of debt relief, which should
not be abused:
 Forgiveness by individuals or organization
 Bankruptcy
Wrap-Up
Tips and Warnings
Purpose of Lesson
Sound
the
Alarm!
 Warn Saints of false prophets and teachings
 Prevent Saints from drinking the Kool-Aid
 Expose false prophets and teachings
 False prophets are preying on Saints and
young people
 Awareness of new and old false teachings
 Enhance ability to identify false prophets
and teachings
Don’t Drink the Kool-Aid
 Remember Jim Jones
 Jim Jones, the leader of the group, convinced his
followers to move to Jonestown. Late in the year
he then ordered his flock to commit suicide by
drinking grape-flavored Kool-Aid laced with
potassium cyanide. In what is now commonly
called "the Jonestown Massacre", 913 of the 1100
Jonestown residents drank the Kool-Aid and died.
Why People Drink the Kool-Aid
"For the time will come when they will not endure sound
doctrine; but after their own lusts shall they heap to
themselves teachers, having itching ears; And they shall
turn away their ears from the truth, and shall be turned
unto fables (2 Tim 4:3-4).
Beware!
 Be suspicious of anyone claiming extra-biblical
revelation from God.
Traits of False Prophet
2 Peter 2:1-21
 Exalt themselves and pretend lifting up Jesus
 Covetous and Money hungry
 Walk after the flesh
 Teach and preach against living free from sin
Hate God’s Word = Truth
 The primary characteristic of false teachers is that
they hate God’s truth and therefore they use their
teaching to undermine it.
 Like Ezekiel, we should be quick to call out such
teachers.
 The protection and health of Christ’s church demands
it.
False Prophets
 Christ tells believers in Matthew 7:15 to beware of false
prophets and warns they will come to us disguised as
believers.
 They will outwardly appear to be His followers but
inwardly they are “ravenous wolves” seeking to destroy
the flock.
Traits of False Prophets
 Follow their own spirit rather than God. Today we
might say they take Madame So and So’s advice and
follow their heart rather than the scriptures.
 Claim God has spoken to them or through them when
He has not.
 In Ezekiel’s day this meant claiming to hear from God
outside His chosen channel of revelation – His
prophets.
Traits of False Doctrine
 Does not line up with the Word of God
 Not in the Word of God
 Causes division among the Saints
 Conflicts with personality of God and Christ
 Conflicts with other scriptures
Traits of False Doctrine
 Exalts the self rather than Christ
 Doctrine attached to money
 Doctrine equates another person on same level as
Christ
 Revelation or Vision does not coincide with the
Written Word of God.
Traits of False Doctrine
 Advocate a different set of beliefs other than what the Word of God teaches
 Unsound words : Interpretation of the Word is changed to unscriptural ideas
 Teachings that promote a lifestyle of ungodliness
 Teaches dependence on intellect, human abilities and accomplishments
 Seeks to create division through disputes about the Word and create followers
of self rather than Jesus Christ.
 Teaching that displays a form of godliness but is motivated by
Other Gospels
 Prosperity - Gospel of Earthly Wealth and Health
 Motivational – Feel Good Gospel
 Humanism - Emphasizes the value and actions of
human beings, individually and collectively, and
critical thinking and evidence over established
doctrine or faith.
Materials Available
 False Doctrine and Teachings Study Guide
 Tips and Warnings of Fraudulent Plans
To request materials contact: Sis. Karen Smith at
4jcconsulting@gmail.com .