DENVER -- Attorney General Ken Salazar announced Wednesday that his office has settled with eight of the 10 defendants who were charged with participating in two illegal pyramid schemes in Adams County.

Salazar's office filed lawsuits last month against nine employees of Adams County court system and a former Adams County deputy sheriff for their alleged involvement in the promotion of two illegal pyramid schemes.

The lawsuits alleged that the defendants violated the Colorado Consumer Protection Act by promoting the "Original Dinner Party" and "The Garden" pyramid schemes. The lawsuits were filed following a lengthy investigation, based on a tip from District Attorney Bob Grant.

"Pyramid investment schemes are illegal. They eventually always run out of new recruits and collapse," said Salazar. "The great danger of every pyramid scheme is that the only people who make money are the initial promoters."

The eight settlements will result in the defendants paying a total of $26,100 in penalties and the forfeiture of $84,950 in illegal proceeds they received from participating in the pyramid scheme, according to Salazar. The agreements also prevent the defendants from participating in any other pyramid schemes require the defendants to "fully cooperate" with the Attorney General's Office in its investigation.

The defendants who settled were: Joseph N. Abeyta, Valerie L. Arfstan, Tina M. Gerhardt, Joyce L. Keeling, Lynette R. Merich, Margaret Beatrice Montoya, Dawn R. Sanchez, and Jamie J. Stapleton.

Two other defendants named in the original lawsuit, Anne Marie Eichinger, and Lorna Kay Hein, did not settle.

Under Colorado law, a pyramid scheme is any program that uses a pyramid or chain process in which participants pay in excess of $50 for the opportunity to receive a much larger payoff once others are induced to join, according to Salazar. The pyramid derives its funding primarily from money paid by newly recruited members rather than from the sale of products or merchandise to individuals outside of the program.

So-called "gifting programs" are pyramid schemes because they depend solely upon the participation fees paid by new recruits to be able to pay off more senior participants in the scheme.

Salazar said the investigation of the pyramid schemes is continued and there may be additional enforcement action.