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 ?
Last April, for example, the Shanghai Administration for Industry and Commerce discovered two companies were involved in fraudulent online pyramid schemes that had by then duped victims out of 71.79 million yuan ($8.67 million).
People will inevitably be hurt both directly and indirectly when they or their breadwinner is fooled into entering a pyramid scheme. It is not just P.T.
The release states that pyramid schemes and other illegal deposit taking activities are unlawful in Botswana and that the nature of these operations constitute illegal deposit taking from the public, hence contravening Section 3(1) of the Banking Act (CAP.
In the past, pyramiding has attracted a lot of news when the pyramid scheme fails and people lose their money which, in many instances, are lifetime savings.
TelexFree sold Internet telephone calling services, but federal prosecutors allege the business was really a massive pyramid scheme that may have been worth about $1 billion.
Under the Australian Consumer Law, it is illegal not only to establish or promote a pyramid scheme, but also to participate in one in any capacity," Mr Sims said.
In December 2012, Ackman publicly declared (http://www.herbalife.com/global) Herbalife a pyramid scheme and was set to selling short the stock, believing that it's actually worth nothing.
Yoshimi Tazawa, 74, has admitted to involvement in the alleged pyramid scheme and acknowledged to getting more than 500 million yen from it, police said.
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.
Project co-ordinator Tracy Bell said: "It's a great honour for the Pyramid scheme, for Barnardo's and all volunteers.
I READ YOUR ARTICLE IN THE NOVEMBER 2004 ISSUE TITLED "Network Marketing or Pyramid Scheme?" I think it is awesome that BLACK ENTERPRISE has accepted network marketing as a legitimate business model and would like to educate African Americans on how to determine the difference between the illegal pyramid schemes and a real business opportunity.
THE Midland directors of a pyramid scheme which promised to create instant millionaires could face fraud charges.