Answered

How does one run a Ponzi scheme?
devise a pyramid of investors in which lower rungs pay for investment returns on
upper ones, while the money gets siphoned off
render illegal money legal in a three-step process
create a ghost employee to defraud a payroll
steal money before it gets recorded into accounting
prtain Crimes Pool 22



Answer :

GinnyAnswer

Final answer:

A Ponzi scheme involves deceiving investors by using new investors' money to pay previous investors, leading to financial collapse.


Explanation:

Ponzi schemes involve deceiving investors by using new investors' money to pay previous investors, creating an illusion of profits. The perpetrator misappropriates funds for personal use, leading to a collapse that results in all investors losing their money.

The most infamous example is Bernard Madoff's $50 billion Ponzi scheme, where thousands of investors were defrauded through false promises of high returns.

To run a Ponzi scheme, the individual typically falsely claims to invest in legitimate assets while diverting funds for personal gain, creating a cycle of unsustainable payouts to maintain the illusion of a successful investment.


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