It is fraudulent from start to finish. They are offering - on a ten dollar investment! - a rate of return that is unheard of, and impossible. 1.1% compounded daily - yes, daily! - is the equivalent of 100% interest in about 1 quarter! Bear in mind a reputable bank would be giving you - if you were an enormous investor - possibly as much as 7% per quarter, not 100%!
Now they act like they are for big boy investors, but they leave that $10 option there. They also let you know that to get this deal, you must leave your money in there for 210 days, no matter how much you "invest".
There's the trick. Most may doubt a little, but figure, "Heck, I can try $10, who knows?"
Well, 210 days later - which is seven months! - you'll know. Because they aren't truly going to send everyone around $136, which is what it would work out to!
They are counting on two types. The genuinely foolish, who'll give them some large sum, and not try to get it back for seven months - by which time they may be gone. And secondly, the thousands more who are only "moderately" foolish, who'll send in the ten bucks.
Either way, they are playing with vast sums of other people's money for seven months before anyone knows to complain. And who knows, most will probably only want to withdraw a bit, and let the rest "rollover". And there'll be still more investors by then, so they could pay some people off with the new investors.
Doesn't really matter whether they are planning on flying by night in seven months, or keeping up appearances with the next generations of investors. Why doesn't it matter?
Because no one, flat out NO ONE can offer that rate legitimately. It's financially impossible. Remember, they have to make money, too. They would have to be making even more than 100% interest each quarter to afford to give you that rate.
Look around. Do you see any company or corporation on Earth growing that fast? Look through history books. Did they ever?
The answer is "no". Never happened, never will.
The Agape scandal was the fact that they were defrauding people with the Ponzi scheme.
ponzi
The definition of a ponzi scheme is that ponzi scheme is a fraudulent investment operation that pays returns to separate investors from their own money or money paid by subsequent investors, rather than from profits earned by the individual or organization running the operation.
No. They all collapse of their own weight.
$65-billion
Caritas - Ponzi scheme - ended in 1994.
Caritas - Ponzi scheme - was created in 1992.
The Ponzi Scheme was created on 1998-03-31.
If you were an investor in Madoff's ponzi scheme, you lost money.
The Agape scandal was the fact that they were defrauding people with the Ponzi scheme.
The Ponzi Scheme/ Pyramid Scheme Created by Charles Ponzi
ponzi
You can joke it is like a Ponzi scheme as far as money from one investor is used to "pay" another and so on....
The definition of a ponzi scheme is that ponzi scheme is a fraudulent investment operation that pays returns to separate investors from their own money or money paid by subsequent investors, rather than from profits earned by the individual or organization running the operation.
It is never ok to take part in a ponzi scheme. It is not honest or legal.
The only word I could think of that rhymes with "fonzie" is ponzi (like in a ponzi scheme).
Ponzi scheme. Really, i heard it on Oprah.