| gen. |
Ponzi scheme (A Ponzi scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned by the operator. Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. .... Typically, extraordinary returns are promised on the original investment and vague verbal constructions such as "hedge futures trading", "high-yield investment programs", or "offshore investment" might be used. ... Ponzi schemes sometimes commence operations as legitimate investment vehicles, such as hedge funds. WK Alexander Demidov) |
