Investor Protection Guide: Pyramid Scheme

{
  "id": "MLC-T-LAW-002768",
  "term": "Investor Protection Guide: Pyramid Scheme",
  "field": "Law",
  "definition": "A fraudulent business model that recruits members by promising payments or services for enrolling others into the scheme, rather than supplying actual investment or sale of products. As recruitment becomes more difficult, the scheme inevitably collapses, leaving most participants, especially those at the bottom, with financial losses. These schemes are illegal in many jurisdictions.",
  "url": "https://mlchart.com/terminology/law/investor-protection-guide-pyramid-scheme/"
}