Q: What is Ponzi scam ?

Ans: Ponzi scam is also known as pyramid scam is a type of affinity scam in which the scammer would through emails and advertisements offer the people to earn huge profits only by investing a certain amount of money and they have to sit comfortably in their room.

The scammers also give exciting offers like early bird offer that would be able to make more profits. After investing their money in such schemes,  people land up having nothing in their hand, as the scammer runs away with the money leaving behind and no clue of their existence so as to track them.

The cases of ponzi scheme in India are as follow : 

In November, 2018, Gaylen Rust of Utah was accused by the Government for running ponzi scheme and they generate huge wealth, like that if 25-40% per year,which is about 47 to 200 million of money. It was observed that more than 200 people had become a victim of this scheme.

 In the same year,  when Gaylen ruth was found guilty, in the month of September, a person by the name of Claud R. ‘Rick’ Koerber, from Utah itself, was found guilty of running a ponzi scheme. Under this ponzi scheme, the investors in the property had suffered a loss of 100 million.

In 2017, Michael Scronic from New York, was held levied with civil and criminal charges, that cause a loss of Rs 27,000 million dollars to the investors.

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