Pyramid scheme

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Related to Pyramid schemes: Amway, Multi Level Marketing

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 ?
This may be tricky, because we are quick to trust those who we already have a personal relationship with, but it is still just as important to do your research before agreeing to invest in what could be a potential pyramid scheme.
We have had two reports this year from people who got scammed by a company using a pyramid scheme, and claims to invest in advertising and promotions.
The consumer protection directorate did not receive any complaints regarding pyramid schemes or network marketing in 2014.
WORCESTER -- Authorities are concerned a new phone service app, which they believe is an offshoot of the alleged pyramid scheme TelexFREE, is targeting members of the Brazilian and other minority communities.
The concern with pyramid schemes is that the financial benefits held out to induce potential members to join up rely substantially on the recruitment of further new members into the scheme.
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.
A direct result of Bernard Madoff's arrest is that we have all been exposed to new terminology; ie, a Ponzi scheme and pyramid scheme.
Pyramid schemes have been tried and made illegal in many countries, including the United States, France, Germany, Canada, Colombia, Malaysia, Norway, Australia, NewZealand, Japan, Nepal, Sri Lanka, Thailand, Iran and the People's Republic of China.
Colombia has ordered the arrest of seven people accused of running a money laundering and pyramid scheme that was linked to riots and threatened to damage the economy by causing millions of dollars in lost investments.
According to Robert FitzPatrick, who runs the Pyramid Scheme Alert newsletter, the vast majority of new recruits actually lose money before bailing on the proposition entirely.
Gilbert McDonald, 68, invested pounds 1000 in the Women Empowering Women pyramid scheme in the hope of large profits - but lost the lot.
TRADING standards officers are to investigate a new pyramid scheme exposed by the Sunday Mercury.