• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 15. Scams > Pyramid Schemes

Pyramid Schemes

Pyramid schemes are so named because if you diagramed the scheme it would resemble a pyramid with ever increasing members descending from its initiator. But they also could have received this name because this particular scam has been around so long that it might well have been present at the time the pyramids in Egypt were being built.

Pyramid schemes keep surfacing with slight variations in terminology and subtle changes in substance to make them look legal. But they are not. A recent incarnation of the pyramid scheme involved a “gifting club” where people made cash “gifts,” which really were not gifts, to high-ranking members of the club with the promise that as they recruited new members to the club, they would rise through the ranks to a position where they would be receiving “gifts” from new members in large amounts. The problem with this is the same problem with any pyramid scheme. Eventually you run out of people and those left on the bottom of the pyramid lose everything. It is a scam, pure and simple.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint