Pyramid Schemes

Has anyone else noticed various pyramid schemes floating around at the moment? In the past two weeks one mate has tried to persuade me to invest in Mirror Trade International (that takes bitcoin off you and then claims to trade it on Forex) and another has tried similar with CashFX (which just takes cash and then claims to trade it on Forex). Both guarantee insane returns of 20% a month and appear reliant on referrals to keep going.

I don’t have a particular problem with investing in Ponzi or Pyramid Schemes, as long as you’re in and out early. Just curious as to why they are popping up right now. Possibly because people can’t get a return in their bank accounts.

Doesn’t that make you a criminal?

I don’t think so. I’m not 100% sure that they are, they just reek of it. Does an investor need to be completely in the dark to not be guilty?

No, you could be charged with aiding and abetting to fraud.

So, all of Madoff’s investors could have been charged with aiding and abetting to fraud?

No, but you stated that you suspect they are Ponzi schemes and tried to get money out before it collapses. Lawyers are going to have a field day getting to you.

I know in the US there are laws against pyramid schemes in some states. Those are defined based on whether or not there is an actual product being sold. If you’re just collecting people under you and making monkey off them, it’s illegal. If you’re selling vitamins or make-up or trips abroad, it’s legal. But for a lot of product-based MLMs, it’s a garbage product that’s being sold to prevent it from being a pyramid scheme, and those can be shut down.

I’m not sure individuals are actually prosecuted for being involved in them. It’s white collar crime, so it’s gong to be shut down and maybe a slap on the wrist, I would think.

I haven’t invested and have no intention of doing so. I suspect they are Pyramid schemes, by the way.

Good for you.

I probably should cash out my pension, as I suspect that’s going to end up being a government controlled Ponzi scheme by the time I hit retirement.

Never, unless you live in Venezuela. Although there were some investment schemes by huge companies in the Netherlands that actually gave you less money each year due to the small print clause that stated that investments made were at your own risk, and costs deducted.

Once upon a time I was involved with FHTM or Fortune High Tech Market for a while when it was still a thing. Also dabbled in HYIP programs years ago, including ASD and Zeek rewards. Nothing lost, nothing gained, left those and went to something more substantial, eCommerce.

It’s extraordinary how long some of these pyramid schemes can keep going. There often seems to be a religious aspect alongside the get rich quick greed. Mirror Trade International definitely has a whiff of evangelicalism about it.