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Illegal Financial Schemes


Find out more about Illegal Financial Schemes.

Illegal Financial Schemes

What is an illegal financial scheme?

Illegal financial schemes are structured like a pyramid. Investment scams are typical examples of a pyramid-structured illegal financial scheme. Investment scams start with one person, the initial recruiter, who is situated at the top of the pyramid. The initial recruiter recruits a second person, who is required to ‘invest’ a certain amount of capital. This invested capital is paid directly to the initial recruiter. To make the capital back, the recruit must enlist more people under him/her, who also all have to invest. As more people are enlisted to invest, the recruit makes a profit with just a small investment. Illegal financial schemes usually promise high returns and are often product-based to disguise the true nature of the business.

 How Illegal Financial Schemes Work

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