Ponzi scheme research paper

The literature for a financial adviser audience on Ponzi schemes is limited, and this paper attempts to help fill that void. We provide an overview of how these fraudulent investment schemes operate and offer a detailed analysis of how financial advisers and their clients can detect them. Other topics covered include a discussion of the motivations and traits of Ponzi perpetrators and the conditions under which they operate their illegal schemes. Next, we discuss the legal consequences of being involved in such schemes, and provide an overview of how regulators have fared against Ponzi perpetrators.

Ponzi scheme research paper

Conclusion BitConnect Coin is a publicly tradeable altcoin. Users can download their own wallet and mine the coin if they wish. These coins are then parked with the company for a period of to days, on the promise of a daily ROI payout.

The BitConnect Compensation Plan

BitConnect Coin has no real world application. Nobody is buying or trading it other than BitConnect and its affiliates. The referral commissions serve as a recruitment layer, adding an additional pyramid layer to the scheme. BitConnect affiliate recruitment of course ties into the value of BitConnect Coin, as new affiliates invest in BitConnect Coin through BitConnect and inadvertently drive up the price.

Ponzi and Pyramid Schemes Research Paper Example | Topics and Well Written Essays - words

The only reason BitConnect Coin is used is because BitConnect can generate them at little to no cost. As with all Ponzi schemes, once affiliate recruitment dies down so too will new investment. This gives the anonymous admins plenty of time to cut and run, whilst desperate affiliates are left in the lurch.

BitConnect Coin will have likely been removed from public exchanges by that time. With BitConnect affiliates ultimately left holding yet another worthless pump and dumped altcoin.Bernie Madoff Bernie Madoff research papers look at the former stockbroker and financial advisor, convicted of one of the most extensive Ponzi schemes in American history in , that was sentenced to years in prison.

Ponzi scheme - Wikipedia

BitConnect is the world-wide community. No any particular owner of those. Someone set up the BitConnect website, someone receives real money for pre-mined BitConnect altcoins and someone pays affiliate ROIs from one or more bank accounts under their control.

A pure Ponzi scheme is an investment fund where the fund originator never makes a legitimate investment in assets that produce income. 1 Thus, “dividends” are paid to existing investors out of the capital contributions of new investors. This is a list of Ponzi schemes, fraudulent investment operations that pay out returns to investors from money paid in by subsequent investors, rather than from any actual profit earned.

A Ponzi scheme (/ ˈ p ɒ n z i /; also a Ponzi game) is a form of fraud which lures investors and pays profits to earlier investors by using funds obtained from newer investors. Investors may be led to believe that the profits are coming from product sales, or other means, and remain unaware that other investors are the source of profits.

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average annual returns for the US stock index. As it would turn out later, the fund was in fact the world’s largest Ponzi scheme.

Ponzi scheme research paper


Journal Ponzi Schemes: A Critical Analysis