Pyramid and Ponzi schemes share many characteristics used to defraud investors by accepting capital that will be used for their own gain, not. Read the latest news on Ponzi Scheme to learn more about the most recent events, cases and point of view with our Ponzi Scheme news section. Ponzi scheme, fraudulent and illegal investment operation that promises quick, easy, and significant returns on investments with little or no risk.

Author: Vudonos Moogugar
Country: Lebanon
Language: English (Spanish)
Genre: Travel
Published (Last): 26 October 2012
Pages: 286
PDF File Size: 17.22 Mb
ePub File Size: 20.76 Mb
ISBN: 797-3-22368-443-1
Downloads: 38217
Price: Free* [*Free Regsitration Required]
Uploader: Moogukasa

Ponzi schemefraudulent and illegal investment operation that promises quick, easy, and significant returns on investments with ponzzi or no risk. The second group, in turn, is paid with funds obtained from a third group of investors, and so on until the number of potential investors is exhausted and the scheme collapses.

The operator may either appropriate a portion of incoming investments ponzk the scheme progresses or wait until the operation is about to collapse before absconding with the funds.

Although historians believe variations of the Ponzi scheme existed as early as the 17th century, the scheme was named for Carlo Ponzi, an Italian immigrant to the United States who scammed thousands of New England residents ce of millions of dollars in —20 with his plan to sell European postage stamps. Ponzi initially acquired a small group of investors with the promise of doubling their investments within 90 days. Ponzi was arrested in and charged with multiple counts of fraud and larceny and sentenced to prison.


Ponzi was by no means the last to effect the scheme. In March he pleaded guilty to 11 charges of fraud and money laundering, and in June he was sentenced to years in prison.

Ponzi scheme

We welcome suggested improvements to any of our articles. You can make it easier for us to review and, hopefully, publish your contribution by keeping a few points in mind. Your contribution may be further edited by our staff, and its publication is subject to our final approval. Unfortunately, our editorial approach may not be able to accommodate all contributions.

Our editors will review what you’ve submitted, and if it meets our criteria, we’ll add it to the article. Please note that our editors may make some formatting changes esquemz correct spelling or grammatical errors, and may also contact you if any clarifications are needed.

Nov 21, See Article History. Nolen Learn More in these related Britannica articles: Fraudin law, the deliberate misrepresentation of fact for the purpose of depriving someone of a valuable possession.

Although fraud is sometimes a crime in itself, more often it is an element of crimes such as obtaining money by false pretense or by impersonation. European legal codes and their derivatives often…. Larcenyin criminal law, the trespassory taking and carrying away of personal goods from the possession of another with intent to steal. Larceny is one of the specific crimes included in the general category of theft.

Historically, the property subject to larceny in common law consisted of tangible personal goods. Investment, process of exchanging income during one period of time for an asset that is expected to produce earnings in future periods. Thus, consumption in the current period df foregone in order to obtain a greater return in the future. For an economy as a whole to invest, total production must…. Help us improve this article!


Contact our editors with your feedback. rsquema

You may find it helpful to search within the site to see how similar or related subjects are covered. Any text you add should be original, not copied from other sources.

Ponzi scheme | crime |

At the bottom of the article, feel free to list any sources that support your changes, so that we can fully understand their context. Internet URLs are the best. Thank You for Your Contribution!

There was a problem with your submission. Please try again later. Ewquema Exploring Britannica Marketing. Marketing, the sum of activities involved in directing the flow of goods and services from producers…. English language, West Germanic language of the Indo-European language family that is closely related…. Slavery, condition in which one human being was owned by another. A slave was considered by law as property,…. If you prefer to suggest your own revision of ponzu article, you can go to edit mode eequema login.

Thank you for your feedback. Discover some of the most interesting and trending topics of