A Pyramid scheme or a Ponzi scheme?

September 11, 2014

  • 29T Antitrust and Trade Regulation
  • 29TIII Statutory Unfair Trade Practices and Consumer Protection
  • 29Tk231 Pyramid, chain, or referral sale plans

09-11-14“Pyramid scheme” rewards participants for inducing other people to join the program, and a “Ponzi scheme” operates strictly by paying earlier investors with money tendered by later investors, while a legitimate “multilevel marketing program” survives by making money off product sales.

U.S. v. Gold Unlimited, Inc., 177 F.3d 472, (6th Circuit, 1999)