pyramid scheme


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pyramid scheme

n.
A fraudulent moneymaking scheme in which early participants are paid out of money received from later recruits, with the final recruits putting money in and getting nothing back.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.pyramid scheme - a fraudulent scheme in which people are recruited to make payments to the person who recruited them while expecting to receive payments from the persons they recruit; when the number of new recruits fails to sustain the hierarchical payment structure the scheme collapses with most of the participants losing the money they put in
scheme, strategy - an elaborate and systematic plan of action
References in periodicals archive ?
According to police reports, the two suspects, aged 39 and 34, operated a money transfer shop and allegedly persuaded people from the Philippines to invest money in the form of a pyramid scheme and double their investment.
If you have trouble understanding the exact contents of the contract, be sure to enlist outside help before signing on to invest in a potential pyramid scheme.
We have had two reports this year from people who got scammed by a company using a pyramid scheme, and claims to invest in advertising and promotions.
A typical pyramid scheme involves offering people huge returns on their investments.
In some cases this can be a genuine marketing strategy, but it is often used to exploit members in a similar way to a pyramid scheme.
But it has emerged that the offer was a pyramid scheme that resulted in dozens of members losing sums of up to PS3000 each, despite being told they would receive PS24,000 in return.
WORCESTER -- Authorities are concerned a new phone service app, which they believe is an offshoot of the alleged pyramid scheme TelexFREE, is targeting members of the Brazilian and other minority communities.
Although Lyoness has been investigated by regulators for conduct in other countries, this is the first court action taken against Lyoness alleging that the Lyoness Loyalty Program constitutes a pyramid scheme.
Herbalife, which sells weight management and skincare products, is being denounced as a pyramid scheme by Bill Ackman, a hedge fund manager.
The Tokyo District Court on Monday sentenced a 74-year-old businessman to 30 months in prison and a 3 million yen fine for a pyramid scheme in which he fraudulently collected 7.
Mr Jukes complained about this report claiming that it implied that he was involved in promoting a fraudulent and unlawful pyramid scheme.
Authorities shut the office amid loud allegations that it was running a pyramid scheme.