I ran into the same sort of scam back in the day. I was trying to get by as a content writer, and a guy called me up and said, "Look at my site, I think it needs some new content." He wasn't sure what he needed, and it was definitely poorly written, so I figured I could help out. He told me he wanted to meet me at his office at a local community college. Community colleges regularly have offices available for small start-ups, so no red flags had been raised yet.
I showed up and there was apparently a conference going on. The guy said, "I just thought this was the best way for you to see what we do." Fair enough, I grabbed my nametag, sat down, and started taking notes. I was pretty down on my luck and cash at the time, so I wasn't really in a place to be asking too many questions; I would literally take any client I could get.
The presentation was among the strangest things I've ever seen; a guy talking about how he got in at the ground floor and throwing $20 bills into the audience, showing pictures of his mansion and Lamborghini, full of lines like "fire your boss!" and implying that anyone who isn't rich has been duped and isn't as smart as those in the crowd obviously were.
I can't remember what the company was, but it was something about a lawyer on demand; you pay in $40/month, and anytime you need an attorney you have one - like insurance but with lawyers. To be able to sign up you had to pay $250, then you got x% of everyone that signed up under you, x/2% of anyone that signed up under them, and some sort of commission for getting your friends and family to pay the $40/month: The classic multi-level marketing garbage where 99% of the presentation is about making money and 1% is about the product.
There were people who had obviously been placed in the front row talking about how much money they had made, how they were here just a month ago and already had reached level X, and they would methodically nod their heads whenever the money-throwing guy talked.
It was really slimy, and by this point I was just ready to get out of there. The guy brought over an application and said, "Alright, so for you to be a content writer legally we need you to be a part of this program, so you put up the $250 up front and then I'll pay it back once we've gotten our project going." He refused to spot the "membership fee" up front for me, so I left, though he even stood in front of my car to try not to get me to leave.
I had almost forgotten about that.