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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
References in periodicals archive ?
The public is further advised to report to the bank any suspected illegal deposit-taking schemes or pyramid schemes for investigation.
Indeed the money the 'investors' in the various Ponzi and pyramid schemes proliferating in the Davao, Caraga, and Cotabato regions are theirs.
Yet the initial actual payments in a pyramid scheme continue to attract the gullible, especially when friends or relatives are the ones providing testimony about the generous profits.
Pyramid schemes generally use money from new recruits to pay older members, and people can also become network marketers by recruiting others, thereby receiving a share of sales made by the newly recruited.
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.
The post Prison and e1/4200,000 fine for pyramid schemes appeared first on Cyprus Mail.
Pyramid schemes are very risky "get-rich-quick" rackets that can cost a lot of people a lot of money.
Pyramid schemes involve people being asked for money without any goods or services changing hands.
Unfortunately, we have seen an increase in these pyramid schemes in the past year.''
In spite of these controls, every year Chinese consumers report being cheated by pyramid schemes. A recent incident occurred in September, when a woman surnamed Li was arrested in Hangzhou, capital of Zhenjiang Province, for amassing more than RMB 1.70 million (US$248,000) from 47 victims through promoting multilevel marketing for a " French cosmetic brand" called Lady Butterfly, reported the Beijing-based news agency China News.
Pyramid schemes, which are illegal, offer to pay often high returns to people who pay an initial joining fee and recruit other members to the scheme.
Pyramid schemes are one of the commonest types of investment frauds.