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 ?
As a result of Mr Stott s involvement in a pyramid selling scheme, Justice Middleton also made an order by consent banning him from managing a company for five years.
Pyramid selling schemes are an arrangement in which persons make a payment to join the scheme, having been substantially induced to join, on the basis that they can subsequently earn payments for inducing others to join the scheme.
Camelot said: "Further initial reports clarified that the allegation is a serious one, that some sales managers applied pressure to more junior employees to take part in a pyramid selling scheme using their own money.
Last year, we also exposed loan sharks who were handing over cash to hard-up Scots so they could blow it on pyramid selling schemes.
And he established pyramid selling schemes on the internet using businesses such as Lifeclub and Pocketmoney Club to cheat investors out of money.
Experts found chain letters, foreign lotteries and pyramid selling schemes have the highest levels of awareness among the public.
And he also established pyramid selling schemes on the internet using businesses such as Lifeclub and Pocketmoney club, again cheating investors out of money.
Under the Consumer Protection Bill people found guilty of setting up, running or promoting pyramid selling schemes may be sent to prison for up to five years.
Unlike traditional pyramid selling schemes, which were outlawed in 1997, Women Empowering Women is not illegal because nothing is being sold.