Ponzi Scheme
A Ponzi scheme is a fradulent investment operation that pays returns to investors from their own money or money paid by subsequent investors rather than from any actual profit earned. Ponzi schemes are named after the notorious Charles Ponzi, who used the technique in the USA in the early Twentieth Century. Recently, Bernard Madoff admitted to running a multi-billion dollar Ponzi scheme.
Ponzi schemes are complicated, and can be hard for lay-people to understand. These slides explain how a Ponzi scheme works, and then contrasts a Ponzi scheme with a pyramid scheme.
View these slides, and then download and use the PowerPoint file for your own use.
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