pyramid scheme
Recruitment-based swindle
A pyramid scheme is a fraudulent business model where participants pay to join and profit mainly by recruiting new members rather than selling legitimate products.
Early participants may profit, but the structure inevitably collapses as recruitment slows, leaving most people with losses.
The company turned out to be a pyramid scheme disguised as a wellness business.
Often distinguished from legitimate multi-level marketing, though the line can blur.
- cashReady spending funds
- fraudIntentional criminal trickery
- scamDishonest money-making scheme
- embezzlerOne misappropriating entrusted funds
- swindleDeception for financial gain
Bernie Madoff · pyramiding · pitch · upline · recruit · recruitment drive · confidence trick · graft · misuse · deception · larceny · phishing · investment fraud · advance fee scam · misappropriation · victims · financial ruin · saturation
- criminal schemesconspiracy, collusion, racketeering, assassination plot, kidnapping plot
- financial fraudsecurities fraud, bank fraud, accounting fraud, defalcation, embezzler
- Financial ScandalsEnron, Bernie Madoff, insider trading, securities fraud, accounting fraud
- crimerobbery, accomplice, alibi, burglary, conspiracy
- crimesarson, burglary, robbery, kidnapping, vandalism
- wrongdoingmisconduct, crime, sabotage, crimes, misbehavior
scheme, pyramid, scheming, schemes, schemed, schemer, pyramid schemes