pyramid scheme

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Related to Pyramid schemes: Amway, Multi Level Marketing
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  • noun

Words related to pyramid scheme

a fraudulent scheme in which people are recruited to make payments to the person who recruited them while expecting to receive payments from the persons they recruit

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References in periodicals archive ?
The South African Banking Risk Information Centre (Sabric) has warned customers about Ponzi and pyramid schemes in the nation.
Pyramid schemes 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.
Pyramid schemes 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.
Pyramid schemes are often sophisticated and may be operated under the guise of a legitimate business.
Pyramid schemes, which are illegal, offer to pay often high returns to people who pay an initial joining fee and recruit other members to the scheme.
Pyramid schemes are one of the commonest types of investment frauds.
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.