Feb25
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Strangers give you money in exchange for piece of the business. Investigators claim Madoff himself told them that he stole 50 billion, but it is becoming increasingly clear that the number may be as fictitious as the sprawling fraud that he allegedly ran. Some 2,000 people had been killed in the violence that followed the pyramid schemes collapse. Adding together the number of victims from these bottom two levels shows that 89 percent of all the pyramid participants 108 of 121 investors are doomed to lose money. There is confidence issue around whether Govts will keep their nerve as recession bites. The Securities and Exchange Commission also pursues these schemes, obtaining injunctions against so-called financial distribution networks which in reversion schemes fact sell unregistered securities.