A ________ is an investment fraud in which a manager collects funds from clients,claims to invest those funds on their behalf,reports extremely favorable investment returns,but in fact uses the funds for his own use.

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This is a classic description of a Ponzi scheme, named after Charles Ponzi who famously ran such a scheme in the early 20th century. In a Ponzi scheme, earlier investors are paid using the funds from newer investors, rather than any legitimate investment returns. Eventually, the scheme collapses when there are not enough new investors to fund the payouts to earlier investors, and the fraud is exposed.

A ________ Is an Investment Fraud in Which a Manager