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Giant Ponzi Scheme

12/22/08 20:59

Pyramid or ponzi scheme is an investment fraud where the investors are promised with substantial profit from unknown sources but actually the funds will come from the next batch of investors. By the time that there would be no investor would like to invest the scheme would then collapse cause there is no real business which generates income. Lately, the all eyes are on Bernard L. Madoff Investment Securities (BMIS) for doing such fraud which ran about billion of assets from individuals and from financial giants like HSBC.
Link: Scam victims: Finance giants count losses - Dec. 15, 2008

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