India, April 30 -- What is a Ponzi or multi-level marketing scheme? A Ponzi scheme is a system in which new members enrich the old ones resulting in a fragile financial pyramid that suddenly collapses one day. How is a Ponzi scheme structured? It is structured like a pyramid. It starts with a firm X who recruits a person Y, who is required to "invest" Rs. 100 to be paid to X. The, Y recruits ...
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