What Is a Ponzi Scheme and How Does It Operate? - Transcript
Schemes are the classic you know take money from Peter to pay Paul uh scenario so oftentimes the Ponzi scheme starts out with good intentions not always but sometimes and these Ponzi schemer can no longer keep whatever the objective of the investment is going but can admit that it’s not working and so keeps taking investor money to pay earlier investors interest or dividends that are due when they really should not have done that and so a Ponzi scheme usually is some investment that was either ill-fated from the get-go or devolved into a an unreal investment often takes the form of promissory notes uh or contracts with a guaranteed return that’s basically what a Ponzi scheme is.