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Re: MONEY!! Lots and Lots and Lots of FREE money!!
What you have described is a classic pyramid scheme. Those of us with something beyond a short-term memory will recall that the collapse of such a scheme led to a revolt in Albania last year.
Pyramid schemes work best for those at the top of the pyramid (i.e. those who initiate the scheme and have everybody sending them money). Eventually the scheme works its way through the population of gullible people who are lured by the attraction of easy money until it arrives at the bottom of the pyramid - i.e. the point where there are no more suckers. Then the pyramid collapses. Those at the top pocket their profits. Those at the bottom are stuck.
I don't know if this is legal or not in the States, but is certainly unethical.
Enjoy your money.