July 15, 2008
High Yield Ponzi Schemes
The type of scam a high yield investment program typically uses is called a Ponzi scheme. A Ponzi scheme, named after Charles Ponzi, is a scam that offers high yield returns from investing. The money that was paid off to the first investors was taken from the later investors. Therefore, there is no actual money made in the investment program itself. It simply steals money from later investors to pay off early investors.