What is the name of the fraud in which investors are promised substantial returns on an investment,but there is in fact no investment and existing investors are paid off with money from new victims.

Question

Quizplus · Accepted Answer

This describes a classic Ponzi scheme in which returns are paid out to investors from the money of new investors rather than from actual investments or profits. This scheme is named after Charles Ponzi, an Italian immigrant who famously ran such a scheme in the early 20th century. The other answer options are not appropriate descriptions of this type of fraud.

What Is the Name of the Fraud in Which Investors