MLchartDataset catalogue

Pyramid scheme

Term · Law · MLC-T-LAW-004051

A fraudulent investment scheme where participants profit primarily from recruiting new members, rather than from the sale of actual goods or services. The scheme relies on a continuous influx of new money from recruits to pay off earlier investors, making it unsustainable and destined to collapse. These schemes are illegal in many jurisdictions, including the United States, due to their inherent unsustainability.

Table 1. Record
IdentifierMLC-T-LAW-004051
FieldLaw
Record as JSON 
{
  "id": "MLC-T-LAW-004051",
  "term": "Pyramid scheme",
  "field": "Law",
  "definition": "A fraudulent investment scheme where participants profit primarily from recruiting new members, rather than from the sale of actual goods or services. The scheme relies on a continuous influx of new money from recruits to pay off earlier investors, making it unsustainable and destined to collapse. These schemes are illegal in many jurisdictions, including the United States, due to their inherent unsustainability.",
  "url": "https://mlchart.com/terminology/law/pyramid-scheme/"
}

Record 4,101 of 5,441 in Law terminology (MLC-0107). Request the full dataset.