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Default Ponzi Scheme

A type of scam where large percentage returns are guaranteed, allegedly due to some sort of excellent investment (like forex). In reality, there is no investment and returns are paid by new deposits from investors.

Ponzi schemes inevitably fail in one of three ways:
The scammers take the money and run.
The authorities step in and close it down.
Not enough new money comes in to pay the promised returns and it collapses.

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Created by Pharaoh, 06-27-2008 at 08:50 PM
Last edited by Pharaoh, 06-27-2008 at 08:50 PM
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British Forex Account Manager Accused of £40 Million Forex Ponzi Fraud | Alan's Forex Blog This thread Pingback 02-14-2009 04:06 PM

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