The South African Banking Risk Information Centre (Sabric) has warned customers about Ponzi and pyramid schemes
in the nation.
generally use money from new recruits to pay older members, and people can also become network marketers by recruiting others, thereby receiving a share of sales made by the newly recruited.
The problem with companies running pyramid schemes
is that they are usually registered and operating from outside the country, so what Dubai Police could do is limited.
The post Prison and e1/4200,000 fine for pyramid schemes
appeared first on Cyprus Mail.
are very risky "get-rich-quick" rackets that can cost a lot of people a lot of money.
Pyramiding on the other hand is generally characterized by people earning primarily from the act of recruiting other people who pay significant registration fees to join the pyramid scheme
But it has emerged that the offer was a pyramid scheme
that resulted in dozens of members losing sums of up to PS3000 each, despite being told they would receive PS24,000 in return.
The press release said that "iFreex appears to have many of the same characteristics as other pyramid schemes
the Securities Division has recently brought actions against, including Wings, TelexFREE and WCM777.
are often sophisticated and may be operated under the guise of a legitimate business.
, which are illegal, offer to pay often high returns to people who pay an initial joining fee and recruit other members to the scheme.
are one of the commonest types of investment frauds.
As a result around 90% of people in pyramid schemes
lose their money.
The government seized control of DMG and another company allegedly involved in pyramid schemes
, Proyecciones DRFE, whose collapse led to looting, rioting and two deaths in disturbances last week.
It could be argued that the massive fines and jail terms for people caught running pyramid schemes
should also be doled out to those idiotic enough to invest in them.
Meanwhile, illegal pyramid schemes
compensate distributors merely for recruiting others into the company's fold, and also tend to charge new recruits high fees just to join.