Celia Henry was promoting a pyramid scheme where a person upon making an investment, is granted a license to recruit similar licensees. David gave Henry his $1,500.00 investment to get a piece of the action and furthermore., in his reliance on Henrys promise, stopped doing his work as a contractor for 5 days to focus on recruiting investors for the pyramid scheme. He succeeded in recruiting 5 licensees. Although he lost $5,000.00 that week for foregoing his project as a contractor, it seems worth it since Henry told him that he is capable of making $20,000.00 as participant in the pyramid. The New York attorney general sues Henry because pyramid schemes are illegal in New York. Can David get anything back from Henry? if so, under what theory?
Contract Law: Contract/Fraud Case Needs Explanation
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