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 ?
If you have trouble understanding the exact contents of the contract, be sure to enlist outside help before signing on to invest in a potential pyramid scheme.
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.
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.
THREE women were arrested yesterday for suspected involvement in an pounds 18m pyramid scheme.
Madoff ran a fund that paid annual interest of about 10% but prosecutors say it was, in effect, similar to a pyramid scheme, with money from new investors paying off old ones.
Two pieces of legislation make pyramid schemes an offence: the Gambling Act of 2005, which came into force on September 1, 2007 and the Consumer Protection from Unfair Trading Regulation, passed by the House of Lords on May 26 this year.
Pyramid schemes can offer dramatically high returns by using later investors' money to pay off those who invest first.
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.
I think it is awesome that BLACK ENTERPRISE has accepted network marketing as a legitimate business model and would like to educate African Americans on how to determine the difference between the illegal pyramid schemes and a real business opportunity.
Mr McDonald has contacted his MP, Anne Begg, who plans to raise the matter of pyramid schemes in Parliament this week.
The Department of Trade and Industry is also looking at possible legislation to regulate pyramid schemes - ultimately doomed to fail because the increasing number of new members needed is unsustainable.