What is a "Ponzi" Scheme?

A Ponzi scheme is essentially an investment fraud wherein the operator promises high financial returns or dividends that are not available through traditional investments. Instead of investing victims' funds, the operator pays "dividends" to initial investors using the principle amounts "invested" by subsequent investors. The scheme generally falls apart when the operator flees with all of the proceeds, or when a sufficient number of new investors cannot be found to allow the continued payment of "dividends."

This type of scheme is named after Charles Ponzi of Boston, Massachusetts, who operated an extremely attractive investment scheme in which he guaranteed investors a 50 percent return on their investment in postal coupons. Although he was able to pay his initial investors, the scheme dissolved when he was unable to pay investors who entered the scheme later.

• As with all investments, exercise due diligence in selecting investments and the people with whom you invest.
• Make sure you fully understand the investment before you invest your money.

http://www.fbi.gov/majcases/fraud/fraudschemes.htm#ponzi

An announcement to help you earn an honest living.

Kenneth R Sword Jr

Thank You for the valuable Information Keneth.

There are so many scams and Ponzi's out there rite now.

We all have to be very careful and research things before we jump in to things.

If your not sure about a program you are about to get into. Then ask some of the people here that have been around for awhile.

Most people dont mind you asking advivce. I know I sure dont mind helping like that.

There is allot of people here at AdlandPro that have been into Network Marketing for a long time.

All you have to do is simply ask for advice from your friends first before jumping in with both feet.

Thanks Again Keneth.

Daniel

Hi Ken

Thanks for another valuable article -  full of information to help us avoid Ponzi and pyramid schemes.

The FBI article is a mine of useful information

Their definations could certainly be applied to an enormous number of the schemes that are floating around all the internet communities, including this one.  It just goes to show that you cant be too careful when you get into a new business.

Saludos
Jenny