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What is a Ponzi Scheme?

What is a Ponzi Scheme?. Lured by the promise of profits, initial investors send money to a fund manager who appears to be legitimate. Fund Manager. Investors. What is a Ponzi Scheme?. As subsequent investors send money to the fund manager…. Investors. Fund Manager. Investors.

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What is a Ponzi Scheme?

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  1. What is a Ponzi Scheme? Lured by the promise of profits, initial investors send money to a fund manager who appears to be legitimate. Fund Manager Investors

  2. What is a Ponzi Scheme? As subsequent investors send money to the fund manager… Investors Fund Manager Investors

  3. What is a Ponzi Scheme? …the fund manager uses some of that money to pay fake dividends to the initial investors, making it look like a legitimate and profitable investment. Investors Fund Manager Investors

  4. What is a Ponzi Scheme? Investors Misled by the fund’s reported earnings, other victims soon invest in the fund as well. Investors Investors Fund Manager Investors

  5. What is a Ponzi Scheme? Investors The manager keeps his fraud going by paying fake dividends to previous investors with money from new investors — all the while earning commissions and fees from each new investment. Investors Investors Fund Manager Investors

  6. What is a Ponzi Scheme? Investors Eventually the fund manager disappears with all the money, or the scheme collapses when he can no longer keep up the charade. Either way, most investors lose nearly everything. Fund Manager Investors Investors Investors

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