A Ponzi scheme is one type of ______ whereby people swindle money with payments of returns earned from new investors.

Question

Quizplus · Accepted Answer

A Ponzi scheme is a type of white-collar fraud, which involves using deceit and trickery to illegally obtain money from others. It is often carried out by individuals in positions of trust, such as investment advisors or financial planners, who promise high returns on investments to attract new investors. However, instead of investing these funds as promised, the fraudsters use the money to pay returns to earlier investors or to fund their own lavish lifestyles, creating a cycle of deceit and deception that can eventually collapse on itself.

A Ponzi Scheme Is One Type of ______ Whereby People