Because thse ponzi scheme operators receive Funds from A, give it to B, against getting fund from B, they extend the same to C and the process goes on. Once there is any bottleneck or dearth of funds from the investors, the whole system falls like card house. The Operators then have no option left than to close down their shutters, ruining the poor small investors the maximum. From this point of view, ponzi schemes are declared illegal all over the world.
Pyramid selling plans or ponzi schemes are illegal and fraudulent.
The Ponzi Scheme/ Pyramid Scheme Created by Charles Ponzi
Illegal pyramid schemes often involve promises of high returns for recruiting others to join the scheme, rather than selling a legitimate product or service. Examples include Ponzi schemes, where new investors' money is used to pay returns to earlier investors, and multi-level marketing schemes that focus primarily on recruitment rather than product sales.
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.
Hopefully nowhere. Fraud, when detected, is always punished.
Eventually not enough new investors can be found, or some of the original get scared and start trying to pull out their principle.
Stringent laws should be enacted all over the world against mushrooming of companies raising funds under ponzi schemes , luring common people to deposit their hard-earned money at lucrative rate of interests and then disappearing from the market all on a sudden,thus making them beggars over night.
yes
A few get rich quick schemes, that actually work, are; marrying into money, buying a lottery ticket and starting a ponzi scheme. The ponzi scheme is really only effective if you are the one who starts it.
Richard M. Starfield has written: 'Wool over my eyes' -- subject(s): Swindlers and swindling, Ponzi schemes, Capitalists and financiers, Biography
Tom Ponzi's birth name is Tommaso Ponzi.
A fraudulent business scheme involves deceptive practices designed to mislead individuals or entities for financial gain. These schemes can take many forms, such as Ponzi schemes, pyramid schemes, or false advertising, and often exploit trust or lack of knowledge. The goal is typically to defraud investors or consumers, resulting in significant financial losses for victims. Legal consequences can be severe for those involved in executing such schemes.