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 ?
io/2017/11/09/pyramid-scheme-mmm-nigeria/) favoured by pyramid schemes , including the infamous MMM pyramid scheme in Nigeria.
A recent mass protest in Beijing reinforced such fears: The demonstrators were not demanding compensation or an investigation into a pyramid scheme but protesting the arrest of its founder.
This is not so much a pyramid scheme as an iceberg scheme.
Ackman is betting that that pool he describes as a pyramid scheme will dry up and with no products being sold directly to consumers, Herbalife will implode.
Summary: Police have arrested five Syrian nationals involved in a pyramid scheme with an illegal foreign company, the Internal Security Forces said Wednesday.
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.
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.
Pyramiding on the other hand is generally characterized by people earning primarily from the act of recruiting other people who pay significant registration fees to join the 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.