Sorry for not posting yesterday, distracted by work as usual.
OK - let's view the Ponzi scheme when it is reduced to its most basic element - the "get rich quick" scheme. This is the essence of every Ponzi scheme - a person is promised unusually large returns on his investments - 200% - 300%, incredible returns.
This was the essence of what Charles Ponzi was able to offer his investors. They stood to make an incredible rate of return on their investments. Most investment counselors will tell a prospective client that a return of 10% per year is a great return. Imagine, then if you are told you could double your investment in a matter of weeks, if not days.
The "secret" to this, of course, is no secret at all. Ponzi discovered the most basic "rip off" in terms of fraud - you pay off the people who invest with the funds of other investors. This is the classic "Ponzi" scheme.
Now that we have defined a "Ponzi" scheme, let's continue to look at Ponzi's life in the next post and then we will talk about the difference between a Ponzi scheme and a Pyramid scheme. Although similar, they do have necessary differences.
As always, have a great and fraud-free day.
http://www.tauskvega.com
------------------>>>>>>>>>>>>>>>gene tausk
OK - let's view the Ponzi scheme when it is reduced to its most basic element - the "get rich quick" scheme. This is the essence of every Ponzi scheme - a person is promised unusually large returns on his investments - 200% - 300%, incredible returns.
This was the essence of what Charles Ponzi was able to offer his investors. They stood to make an incredible rate of return on their investments. Most investment counselors will tell a prospective client that a return of 10% per year is a great return. Imagine, then if you are told you could double your investment in a matter of weeks, if not days.
The "secret" to this, of course, is no secret at all. Ponzi discovered the most basic "rip off" in terms of fraud - you pay off the people who invest with the funds of other investors. This is the classic "Ponzi" scheme.
Now that we have defined a "Ponzi" scheme, let's continue to look at Ponzi's life in the next post and then we will talk about the difference between a Ponzi scheme and a Pyramid scheme. Although similar, they do have necessary differences.
As always, have a great and fraud-free day.
http://www.tauskvega.com
------------------>>>>>>>>>>>>>>>gene tausk
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