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    What is a Ponsi Scheme

    +1  Views: 413 Answers: 4 Posted: 12 years ago

    4 Answers

    robbing peter to pay paul
    Using fraudulent investment techniques to scam investors out of money.
    It is exactly like Social Security. The scheme gets people to invest in the plan, pays out to a few of the investors, and survives only on getting new people to keep investing.
    It's a fraudulent investment trap used like a pyramid scheme; designed so that the "investor" believes that he will have a return on his investment sometime down the line much larger than his initial investment. However, the person who set up the trap recieves a regular income while investing in nothing. The money is often siphoned off to off shore banks so that it is not traceable. The "investor" is swindled into believing that if he invests more, he will receive a higher return.

    It is nothing more than an illegal set up to make the investor believe in a very high return on his investment, that does not exist.


    Your sister,
    Ginger,
    Adreamer2


    Work1ders


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