The National Directory of Certified Public Accountants

Ask A CPA - Investments & Financial Planning

What Is A Pyramid Scheme ?

Pyramid scheme is an fraudulent, illegal scheme in which a con artist convinces victims to invest by promising an extraordinary large return on their investment but instead simply use newly invested funds to pay off any investors who insist on terminating their investment. This timing scheme usually continues to a point in which the con artist disappears with the bulk of the investors funds.

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