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BEWARE OF
PONZI SCHEMES
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| Ponzi Scheme originated in the US in the early 20th Century Wherein public were defrauded of millions of dollars by a swindler named Chalres Ponzi. The sponsors of various fraudulent financial schemes in Pakistan have employed/are employing the Ponzi technique that adopts the following methods in various combinations:
· Offer unusually high rates of return with slogans like doubling money in a short period. These rates are abnormally higher than the return on investment being offered by genuine, established and recognized investment companies. · Use money of new investors as and ongoing process for paying the old investors to also create a confidence level. · Use a cover up legitimate business to provide explanation to investigators including media. The return on legal business in minuscule as compared to pay-offs. · The sponsors are usually bankrupt themselves while living luxurious life styles and use exceptional convincing power to defraud the ‘hypnotized’ victims.
A public Service Message by the awareness and Prevention Division, National Accountability Bureau |
Monday, June 22, 2009
PONZI SCHEMES
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