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Pyramid Schemes
INTRODUCTION
A pyramid scheme is devised basically to take funds from many people
for the benet of a few at the top of the so- called pyramid. Modern busi-
ness pyramid schemes are usually bundled up in some type of investment
scam that produces millions of dollars through the sale of investment cer-
ticates, territory, or products. Only the promoters really benet from this
type of scheme.
Here is an example of a simple version of how this particular scam
works. The promoter mails a letter to ten people asking them to contribute
a small amount of money to the promoter and then mail a similar letter to
ten other people. They ...