Scenario: "Double your investment in 90 days". That is what the advertising flyer says you can earn by participating. Send the money and they do the rest. There is no clear information about how it is done but there are testimonials indicating that it is true.

Scam: The con artist pays off initial investors with money from the next series of investors. Initially he pays high rates to provide proof of the scheme’s legitimacy. At some point the whole things fails and the fraudster takes off taking whatever is left of the money.

Pyramid or Ponzi schemes have been going on since the early 1900's when Charles Ponzi set up a scheme to take advantage of currency exchange rates and postage stamps. More recently, jewelry marketing, cleaning products and chain letters have been used. Fraudsters behind a pyramid scheme will go to great lengths to mimic a legitimate multi-level marketing program. Despite this, they simply use money coming in from new recruits to pay off the initial ones. At some point the schemes get too big and the promoter cannot raise enough money from new investors to pay the swelling ranks of investors. The pyramid collapses and the victims lose their money. In almost all cases, the fraudster manages to steal some of the proceeds for his own use.

If you or someone you know has been a victim of Pyramid/ Ponzi Schemes we want to know. Contact us and take ACTION NOW!