According to the hard-sell pitches made at recruitment events, those bold enough to take the pyramid plunge will receive substantial cash from the recruits below them. However, in practice, the prospective member pools tend to dry up over time. By the time a pyramid scheme invariably shuts dow...
A pyramid scheme is a fraudulent and unsustainable investment pitch that relies on promising unrealistic returns from imaginary investments. The early investors actually get paid those big returns, which leads them to recommend the scheme to others. Investors' returns are paid out of the new money ...
A Ponzi scheme is a type of financial fraud in which the "success" of the entity is propped up by paying returns to initial investors from the money invested by subsequent investors. A pyramid scheme is a fraud that involves the continuous recruiting of investors by previous investors so that...