| Although
the terms “Ponzi” and “Pyramid” are
frequently used interchangeably, there is a distinguishable
difference between Ponzi Schemes and Pyramid Schemes. They
do share common elements, and they are intimately related,
but whereas the victims of a Ponzi Scheme are merely victims,
those who are victimized in the Pyramid Scheme are also participants
in the crime who benefit through their efforts to promote
it, and may become criminally culpable and/or civilly liable
themselves.
A
clear understanding of this distinction may be useful to the
investigator who focuses their practice on financial fraud
cases. The following articles provide; classic examples of
each kind of scam, a comparative analysis, a review of the
things an investor should be alert to, a commentary regarding
investigative issues and a list of real world cases for your
further study and review.
I welcome
your comments,
questions and suggestions.
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