Heidi decided to make extra money by offering to do investments for her friends for a fee.She actually did no investing,but used the funds from new friends to pay off earlier enrollees.This worked well for a while,but her scheme came to light when her supply of new friends came to an end.She is guilty of which of the following practices?

Question

Quizplus · Accepted Answer

One example of a fraudulent crime is a Ponzi scheme,an investment swindle in which high profits are promised from fictitious sources and early investors are paid off with funds raised from later ones.

Heidi Decided to Make Extra Money by Offering to Do