Home Scam/Fraud Ponzi Schemes In India: A Brief Overview Of The Regulatory Landscape –...

Ponzi Schemes In India: A Brief Overview Of The Regulatory Landscape – Criminal Law

0


To print this article, all you need is to be registered or login on Mondaq.com.

I. INTRODUCTION

Simply put, a ‘Ponzi scheme‘ is a scam
investment purposed at cheating investors. It involves persuading
the public to invest in fraudulent, seemingly lucrative, schemes.
With nearly no real income, these thrive on a consistent
progression of new money to survive. When it reaches a point of no
new investors, or the existing one’s cash out, the scheme
collapses. On the face of it, its irrationality is evident. Yet,
the threat it has posed in domestic society is undeniable.

Resorting to investment schemes that offer high returns is not
uncommon. Undoubtedly, extraordinarily high returns to the tune of
100-120% are red flags. But this continues to remain a deeply
ingrained socio-economic problem.1

Charles Ponzi in the early 1920s notably duped thousands of New
England residents by…

Click here for full article: [source_domain