Pyramid scheme


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Pyramid scheme

An illegal, fraudulent scheme in which a con artist convinces victims to invest by promising an extraordinary return but instead simply uses newly invested funds to pay off any investors who insist on terminating their investment.
References in periodicals archive ?
Bo Dietl provides 3 tips to help you avoid pyramid schemes so you don't end up wasting your time and hard-earned money.
The problem with companies running pyramid schemes is that they are usually registered and operating from outside the country, so what Dubai Police could do is limited.
Pyramid schemes are very risky "get-rich-quick" rackets that can cost a lot of people a lot of money.
The press release said that "iFreex appears to have many of the same characteristics as other pyramid schemes the Securities Division has recently brought actions against, including Wings, TelexFREE and WCM777.
Pyramid schemes involve new participants providing a financial or other benefit to other existing participants in the scheme.
According to Ackman, Herbalife "is the best-managed pyramid scheme in the history of the world," reports NYT.
Tracey Bell, co-ordinator of the Pyramid scheme, said: "Our usual outing is bowling, so this is really something very different for the children and very exciting.
The arrests were part of an investigation being carried out by the Office of Fair Trading into a suspected pyramid scheme operating in the south-west of England and South Wales.
Sounded like a pyramid scheme to us - and the Advertising Standards Authority.
Madoff was arrested after investigators said he confessed to his sons that he had swindled investors of a mammoth pyramid scheme - early investors are paid with money raised from new investors.
Madoff ran a fund that paid annual interest of about 10% but prosecutors say it was, in effect, similar to a pyramid scheme, with money from new investors paying off old ones.
The collapse of a pyramid scheme run by a Wall Street broker could cost Spanish investors well over $3 billion, Madrid dailies said yesterday.