The Ponzi Scheme

in ponzi •  7 years ago  (edited)

The Ponzi Scheme is a fraudulent investment operation that involves the payment of interest to the investors of their own money invested or of the money of new investors. This system consists of a process in which the profits obtained by the first investors are generated thanks to the money contributed by themselves or by other new investors who fall deceived by the promises to obtain, in some cases, great benefits. The system works only if the number of new victims increases. Therefore, it is also known as a pyramid system in which the only way to cover high returns is through the money of another participant of the pyramid.21.jpg

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