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Ponzi Schemes

A Ponzi scheme is a type of investment fraud that pays investors returns from money invested by new investors. Investors are lured into these schemes with the promise of high returns. The scheme is named after Charles Ponzi who used this method to defraud investors in 1920.

127 Questions

What is causes of ponzi scheme?

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Asked by Wiki User

Because people love to have high return in their investments, but many don't like to study the kind investment they do.

Is alchemist is a ponzi scheme company?

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Asked by Wiki User

Well, Alchemist if a group of companies, having various industries located in Northern India. However, its modus operandi of raising funds through Infra Realty and Holdings violates Sebi's rules and they should return deposits raised from common people immediately to clean their slates.

What is the verdict on ponzi scheme case?

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Asked by Wiki User

No Court of Law can give verdict in favor of ponzi schemes, rather they should be forced upon to wind up their businesses and/or now allowed to thrive upon their illegal business ruining the common people to pay their price for lust and greed ,lured by astronomical rate of return offered by so called ponzi scheme operators.

Is Genesis Land Development corp a scam. I know of people who have invested in this company but it seems really shady and more like a ponzi scam than a legitimate land development company?

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Asked by Wiki User

I am pretty sure this is a ponzi scheme. Please do not invest with Genesis Land Development Corp. I invested with them years ago and cannot get my money back.

Reason why Genesis is a ponzi:

This company gathers money from investors and buys land to develop. However, their they buy agricultural land that has to be rezoned to commercial for developing. The big problems with this are:

1) Rezoning can take several years

2) Even if the land is rezoned and developed, there is no guarantee that Genesis can make a profit.

3) If an investor wants to take their funds out of their investment with Genesis, they must find their own buyer and have to do all of the legwork to legally pass over the investment to the new sucker.

4) Rezoning may never happen, and therefore, Genesis will legally be able to keep your money indefinitely.

Brilliant ponzi scheme. Please stay away!!

What happens to investors who have gained in pyramid scheme?

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Asked by Wiki User

Those people who invested in a pyramid scheme and got out successfully before it crashed got lucky. That's all.

The goal of the starter of the pyramid scheme is for those who get paid will re-invest their earnings hoping for the earnings to compound. This will keep the pyramid alive longer.

Where in the world are ponzi schemes legal?

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Asked by Wiki User

Hopefully nowhere. Fraud, when detected, is always punished.

Is auxil group company a scam?

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Asked by Wiki User

Yes, this site is linked to the same IP address as numerous other sites that have been labelled as scams. I'd stay away from this site and any other sites offering such great returns in short periods of time.

You get a prompt reply when you pay:

Support:

Hello. I confirm Your payment.

Best Regards

Company Name: Auxil Group Company

Registration Number: 08210759

Address: 46 Kungstensgatan

Stockholm Sweden

email: auxilgroup@gmail.com

Real E-mail: sahdev.kolar@ymail.com

Real Name: Mausamy Nandha

Don't believe it, it's scam.

Are high yield investments a type of Ponzi Scam?

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Asked by Wiki User

"Ponzi scams are scams that promise to return investors with some kind of profit but does not. High yield investments are not always a Ponzi scam, but one should watch out for warning signs."

Can anyone prove Global Investor Alerts is not a scam site?

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Asked by AndrewChung

So far, no. Someone invested in over 100,000 Euro with a with a company based in Japan who sold him various American Stocks that trade on the Pink Sheet (high risk) American market. These shares are now all worth nothing. Thus far they have charged him over 35,000 Euro and he has received nothing. They continue to hound him for money to be sent to Cyprus to an offshore account. Global Investor Alerts is fraudulent.

Fraudulent activity should be reported to your local police or law enforcement agency. Additionally, contact the websites Web Hosting company to see if you are able to pressure them to get the scamming website off the internet.

Can a Ponzi scheme work?

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Asked by Wiki User

No. They all collapse of their own weight.

Why don't investors recognize a Ponzi Scheme?

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Asked by Wiki User

A good Ponzi Scheme has a few things to draw you in

1st A good return (usually more than "market") and good operators make the promised return high enough to generate "BUZZ" but low enough not to appear unreasonable

2nd Others have invested (joined) and are receiving their returns as promised (A key feature of the Ponzi)

3rd They are normally fronted by good salesmen

4th and most important they have a good cover story to explain the high returns

EG: If i promise 100 % return per annum by making and selling chocolate ice cream in Nunavut during winter I am unlikely to get many investors (suckers in a ponzi scheme)

OR if I offer 100% per annum by buying and selling Natural gas, or oil or gold and present a believable front I may be able to generate the needed "BUZZ"

The Ponzi Scheme operators are very often not found out unless

A: Some one gets suspicious

B: The Scheme finally collapses

If I Lost money to a ponzi scheme how much can I expect back?

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Asked by Wiki User

Please expect nothing. Then, in the unlikely event that the guy is caught, kept records, didn't spend all the money and you have a lawyer who can spend years pursuing this, you may get back some pennies on the dollar. And as you expected nothing, that will be a treat.

In most all cases, it is better to learn from it and move on.

Do ponzi scheme 'finders' have to pay restitution?

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Asked by Wiki User

Usually the guilty party is given a criminal penalty which may involve restitution. However, as the funds that are gone are usually so much greater than what he could legitimately earn, the people who lost usually never recover their investment.

Is Lawrence W McGary involved in a ponzi scheme?

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Asked by Fburg

Not sure. I posted some info on him under The Rock Investment Group. Here is information on his meeting with the Elko, Nevada city council wanting oil leases and explaining his plan.

http://www.ci.elko.nv.us/administration/Minutes/03-10-2009.pdf

Moneys taken by Ponzi scheme is Theft?

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Asked by Wiki User

It is a theft in a general sense. But it falls under it's own section of law.

How do people make money from a Ponzi scheme?

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Asked by Wiki User

Say you tell ten people that if they give you $1,000 a piece, you'll give them a rate of return of 10% per month. They do.

Now you have $10,000. You set $1,000 aside, and promptly spend the $9,000 on yourself.

After the month is up, you give each "investor" $100. They are all happy, as they don't know their original principle is gone. They don't ask for it back as they wish to keep making that 10%. In fact, they are so happy, that each of their ten friends wishes to invest.

So now you get $1,000 a piece from 100 people, and have $100,000. You can easily afford to pay another $1,000 to the original ten next month. And you can afford to pay another $10,000 in "interest" to that secondary set of "investors" next month.

Leaving you with another $89,000 to spend on yourself.

So far so good, as long as two things happen. One, you keep getting more suckers to invest. Two, you don't have too many people ask to cash out.

How does the ponzi scheme relate to Agape scandal?

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Asked by Wiki User

The Agape scandal was the fact that they were defrauding people with the Ponzi scheme.

What is a Ponzi scheme?

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Asked by Wiki User

A 'Ponzi scheme' is a scheme in which investors are promised extraordinary returns, but meanwhile these returns are simply paid out from the inflow off new funds from new investors in the scheme. This is much like a pyramid scheme and results in an eventual collapse in which investors lose most -- or all -- of their money.

How long did Bernie Madoff's ponzi scheme last?

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Asked by Wiki User

He started in the late eighties or early nineties, and it ended in 2008.

Is the ponzi scheme named after Charles ponzi or carl ponzi?

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Asked by Wiki User

Charles Ponzi. He invented the pyramidal system in the 20ies in Boston. The concept is to pay the interests to the first investors with the money the new gives you. It actually works until there are not enough new investors to pay the interests. Ponzi promised a 50 % interest for a 3 months investment.