What is a Ponzi Scheme?
The Ponzi scheme is a name for investment fraud in the financial sector and the ancestor of the Pyramid scheme. Many illegal MLM syndicates use this to amass money. This scam is "invented" by a speculator named Charles Ponzi. The Ponzi scheme is also known in China as "demolition of the east wall and repair of the west wall" and "white gloves with empty gloves." In short, it is to use the money of new investors to pay interest and short-term returns to old investors in order to create the illusion of making money and then deceive more investment.
- "Ponzi scheme" originated from a
- from
- Although various "Ponzi schemes" are diverse and ever-changing, they are essentially "old ancestors"
- Compared with general financial fraud, "Ponzi scheme" has more victims, has wider influence, deeper harm, more concealment, and greater social harm.
- The first is the large number of victims.
- The Ponzi scheme's inherent pyramid-shaped investor structure and the pyramid scheme of deceiving and pulling down the line determine that the victims must reach a certain scale to effectively maintain the cash flow required by the scheme. As a result, the victims of typical "Ponzi schemes" are often large. For example, Ponzi had been deceived by 40,000 investors. Columbia, which is characterized by illegal fund raising, "
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