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.
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.
Nu Skin") (NUS) issued false and misleading statements to investors between July 10, 2013 through January 16, 2014 by failing to disclose that the Company's operations in the People's Republic of China ("PRC") resulted in pyramid selling schemes in violation of PRC law.
And he also established pyramid selling schemes on the internet using businesses such as Lifeclub and Pocketmoney club, again cheating investors out of money.
Specifically, the action alleges that throughout the Class Period the Company and senior executives made a series of false and misleading statements concerning pyramid selling schemes the Company had engaged in in its Mainland China operations.
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.