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One is a pyramid cash-gifting scheme that cons people out of money and the other offers a free gift card that dupes winners into revealing their credit card numbers.

Lapeer County Prosecutor Byron Konschuh received information that illegal gift giving operations are cropping up in Lapeer County.

"It's really the simplest form of a pyramid scheme," Konschuh said. "Participants are asked to pay an entry fee, usually from $500 to $5,000 to join the club or group. In Lapeer County I'm told the fee is $5,000. The fee guarantees members a place on a chart and they move up the chart when they bring more people into the club."

Once the participant moves enough on the chart, they're "guaranteed" a large payout of money. The schemes become popular quickly because early players receive money as promised. Word of the successes and the lure of easy cash spreads quickly -- bringing in new players and more money.

"But the only people who really benefit are the con artists," Konschuh said. "Eventually the money stops coming in and the pyramid collapses. No people on the bottom will ever get their money back."

Selling or participating in cash gifting is a felony punishable by up to seven years behind bars, said Konschuh. Those who are aware of schemes in the area should contact their local police, the prosecutor advised.

In another scam being reported in the county, a North Branch woman is being plagued with phone callers saying she's won a $1,000 shopping spree at Wal-Mart or Sam's Club. All she has to do to collect is pay $9.95 for shipping and handling of the gift card.

"Of course they wanted my credit card number," said Lydia Campbell. "I told them there's no way on this planet I am giving that number and I hung up."

Since she declined their offer, the scammers have called her back several times. One time Campbell told the con artist she didn't shop at the stores. The next time she answered the phone, the foreign sounding woman offered to include Kmart. The scam artist phoned Wednesday and Campbell asked for a phone number.

"I called back and it was one of those sexually explicit phone lines," she said. "They asked me for my credit card number."

Campbell fears that in the bad economy, a younger person might fall for the rouse and lose a lot of money. As easy money scams crop up in Michigan's bad economy law enforcement is issuing the same common sense warning they always have.

"There are so many of them out there, through the computer, the phone and the mail," said Michigan State Police trooper Cevin Brown. "Know who you are talking to. If it sounds too good to be true, then it is."

Susan Younger may be reached at (810) 664-0811, Ext. 8122, or susan.younger@lapeergroup.com