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You may have heard the name and you may know a little about it
but do you know how to spot a Ponzi scheme
a Ponzi is a fraudulent investment scheme
that promises guaranteed returns to its investors
from their own money rather than profits earn from a legitimate business venture
ponzi schemes are perfect for a con artist
because they can easily be set up all they need
to look at Fitial a little advertising and lots of people
who are willing to part with their money here's the pitch:
invest right now for big returns in only six months
it guaranteed and risk-free don't worry
will take care of all the paperwork and this is
perfectly legal but don't tell anyone you're investing
this is a secret round one
the con artist pockets investors money
round cue the circle investors grows
the con artist uses some other new money to pay earlier investors
round three earlier investors
are believers now so they recruit family and friends to join in
and at the request to the con artist reinvest their profits
again some the new money is paid to earlier investors
to whet their appetite eventually the Connors can bring in another
new investors to make good on promises he thirty meter earlier investors
scheme collapses the con artist
takes off and most investors lose
everything you can spot a party
you just have to watch for the signs the investments described
as guaranteed and risk-free financial statements and documents
are either questionable are completely non-existent
the answers to your questions really don't make anything happen
checks are made payable to the individual not
the company the mail goes to a post office box
a big talker insist that you must
by now it sounds too good to be true
if you see if the signs don't commit your money
walk away better yet runaway
before you promise your hard-earned dollars to any investment
please verify before you buy contact the organ Department of Consumer and
Business Services
for clearer and objective information you can reach us at
866 814
9710 or
at 503 378
41 40