pyramid

Ponzi vs: Pyramid Scheme: An Overview Pyramid schemes and Ponzi schemes have many similar characteristics based around the same concept: unsuspecting individuals get fooled by unscrupulous investors who promise them extraordinary returns in exchange for their money. However, in contrast to a...

What Is a Pyramid Scheme? A pyramid scheme is an illegal investment scam based on a hierarchical setup of network marketing. The most famous kind of pyramid scheme is, perhaps, the Ponzi scheme. New recruits make up the base of the pyramid and provide the funding, or so-called returns, in the...