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 ?
Both companies were registered last year with allegedly faked asset certificates, and they established e-commerce Web sites and sold gold-foil paintings under a pyramid scheme at a cost of 680 yuan ($82) each.
Stories include a mother who attempts to resurrect her dead son using ancient rituals, a doctor facing his own death and his past as a leader in the boycott of schools, and the little girl who watches her town get taken away as a result of a damaging pyramid scheme. Magona is a powerful literary voice.
It's like an altruistic pyramid scheme -- Mother Teresa meets Amway: you do a favour, someone pays it forward three times--do the math: it works!
Sometimes the loans are charged off as bad debts or the bogus loans are paid off with the proceeds of new fraudulent loans in a pyramid scheme.
The US Federal Trade Commission (FTC) has filed a lawsuit against a Connecticut-based company that allegedly deceived consumers and offered a pyramid scheme. According to the FTC, the company used unsolicited commercial e-mail, 'spam', and newspaper classified ads to offer work-at-home opportunities.
A recent issue included a story on the operator of a pyramid scheme, his involvement with fraudulent unsolicited commercial e-mail and his settlement with the FTC.
It is sometimes called the pyramid scheme. The idea and structure of it is simple, though it is often shielded from being immediately recognizable.
One of the book's four novellas concerns a group of Filipinos who colonize an abandoned apartment building in New York City and run a pyramid scheme to support themselves.
In shows that in accordance with Section 3(4) of the Act, any person involved in illegal deposit taking or operating a pyramid scheme contravenes the banking laws and, if found guilty, is liable to a fine of P2 500 for each day on which the offence occurs and to imprisonment for five years.
In pyramid scheme, Tagum said, first and second tiers are the one who got the return of investment, and usually the one who would spread the 'good' news and tempted others to invest.
Seventy-two accounts with funds totalling RM5.867 million of 25 companies and 47 individuals allegedly involved in the MonSpace Group pyramid scheme have been frozen following a special operation, 'Ops Coin', involving raids 16 premises linked to the company yesterday.
Russian businessman Sergei Mavrodi, whose MMM pyramid scheme deprived millions of Russians of their savings in the 1990s, has died of a heart attack, according to Russia media.