Catalina promises high returns to Darby and other investors,who then agree to trust their funds to Catalina.She uses these funds to pay previous investors.This is

Question

Quizplus · Accepted Answer

Catalina is using new investments to pay off older investors, which is a classic characteristic of a Ponzi scheme. This is illegal and unethical, and investors should be wary of anyone promising high returns with little risk.

Catalina Promises High Returns to Darby and Other Investors,who Then