Ponzi, Pyramid and Affinity Scams
http://www.financiallearningnetwork.com/articles/1/1/Ponzi,-Pyramid-and-Affinity-Scams
Richard Gandon
Richard Gandon is the Managing Director of The Financial Learning Network. His 'Understanding the Stock Market" course was made into a CD-ROM and is in use in more that 50,000 classrooms nationwide.
Every year since 1998, Richard has teamed up with a fifth grade class in Georgia to teach them about the stock market online.
Richard has more than 20 years of financial services industry experience including as a broker, trader, licensing trainer and managed both a sales group and a Historical Equity & Index Research group at Standard & Poor's. By Richard Gandon
Published on 01/16/2008
You hear about a great opportunity to 'invest' usually from someone you know. You attend a 'Party' and see it the 'network' actually work. Everyone seems so nice and so excited for the person who cashed out, for those who are getting close to cashing out and they're even excited for you, the newcomer, invited to the group by your relative, friend, neighbor, co-worker etc. The person cashing out is so excited and confident in this system that they may actually 're-invest' a portion of their new-found wealth and take a position once again lower down the list in hopes of cashing out again.