What is a Ponzi Scheme?
This is for those who don't believe me when I talk about the dangers of "mystery money" schemes. The terms "pyramid scheme" and "Ponzi scheme" are used almost interchangeably. However, the scheme for which Charles Ponzi is most remembered was not a pyramid. If you aren't aware of the story of Ponzi, you'll likely find it familiar. This man promised to double your money in 90 days, and he kept his promise -- until the day he was arrested for fraud. He had created such a personal mystique that he continued to receive money from new investors while in prison. How could someone with so many satisfied customers end up in prison? Because fraud is fraud no matter the results. Ponzi claimed to be investing peoples' money and giving them the proceeds. What he was actually doing was giving peoples' money to people who had previously "invested" in order to make it seem like everything was OK. Meanwhile, he was living a lavish lifestyle while he was millions of dollars in debt. He had no trouble getting the ever-increasing numbers of opportunity-seekers necessary to fund his business. He probably would have kept it up for many years if the government hadn't stepped in. Therefore, the lessons learned by those who wished (and wish) to follow in Ponzi's footsteps are... * Hide the money trail better. * Improve the illusion of selling a real product or service. * Don't promise anything. It's very difficult to prove that a chain letter originated with a certain person. Many pyramid schemes are organized in such a way as to conceal who is at the top. If there is an actual product or service being sold, it's difficult to prove that the main purpose of being in an organization is to recruit others (and their money). Finally, hype it up, but don't get too specific. You can't get sued for disappointing someone. Are these the lessons that should be learned from Ponzi? No. If Ponzi was good at anything it was lying. A lesser con artist trying to do what he did would have been run out of town long before millionaire mode set in. Also, things are different now. If you want to set up your own Ponzi operation, you have a lot of competition and a very savvy audience for your sales pitch if you choose to do it online. A simple Google-based investigation of your Internet trail can allow a scambuster to publish your entire history of crime on his home page for the world to see. Also, the Internet provides ways of making Ponzi amounts of money legally and with less effort. Let's all just stop giving out money to the scammers and trying to emulate them. Make the Web a better place. Mike Jolley is a writer and programmer who recently turned to Internet marketing and publishing full time, with a big focus on business ethics. Find him and his other articles at http://www.onlinehonesty.com
Related News
|
 |
|
|
RELATED ARTICLES
The Everyday Business Ethics Crisis Or Im Mad as Hell and Not Going to Take it Anymore
Breaking news may feature the Enron debacle, WorldCom activities, or accounting problems but we live our everyday business life making ethical choices that affect our employment and businesses. Consider the ethical choices made in these situations:
The Views of Karl Marx VS Max Weber
Compare and contrast the views of Karl Marx and Max Weber with regards as to what motivates people to work.
How To Detect Liars In Your Business & Personal Life
We live in a world full of lies and deception. Most of us (or all of us?) lied or were forced to do so, in a small or larger scale, because of some circumstances. Unfortunately, some individuals use to prevaricate or lie deliberately. They use to do it frequently in every aspect of their life.
Business Ethics: An Oxymoron?
Why do I believe good PR and business ethics are inextricably linked? It comes down to definitions. Ethics is learning what is right and what is wrong and then doing the "right thing." PR involves providing counsel on the "right thing" to do and then helping the organization get credit for it.
Is Your Management Style Lead By Intimidation?
So many women make the mistake of thinking that they have to be these big mean diva bosses, to get respect and cooperation from their staff and colleagues. They walk around the office huffing and puffing, never showing satisfaction at the work their staff does. They rarely praise their subordinates or colleagues work and they try to make them work all hours of the night. These women mottos are "If I can stay here all night, so can you!" One boss I had in particular, her motto was "I don't get high-blood pressure, I give it.! She was proud of this and she caused some of her staff to be stressed out with high-blood pressure. She was later fired!
What is a Ponzi Scheme?
This is for those who don't believe me when I talk about the dangers of "mystery money" schemes.
Business Ethics: An Oxymoron
An oxymoron: the juxtaposition of contradictory words or concepts. That is what we have with the term "Business Ethics". The very contradiction that is inherent in this latter phrase is an indication of the challenge that individuals who work for organizations face as we all approach the resource limits of this planet.
Ethics? How To Take the Measure Business
When asked to write a small piece pertaining to ethics and integrity in the business world, my first inclination was to draw on personal experience.
Minding Your Global Manners
To say that today's business environment is becoming increasingly more global is to state the obvious. Meetings, phone calls and conferences are held all over the world and attendees can come from any point on the globe. On any given business day you can find yourself dealing face-to-face, over the phone, by e-mail and, on rare occasions, by postal letter with people whose customs and cultures differ your own. You may never have to leave home to interact on an international level.
Tales from the Corporate Frontlines: Shifting Culture and Climate in Todays Corporate World
This articles relates to the AlphaMeasure core competency Culture and Climate. AlphaMeasure defines climate as the effect an organization has on the employees, while culture refers more to the acceptable behaviors, attitudes, and habits of the organization as a whole. Knowing and understanding workplace culture and climate leads to a better understanding of what factors are influencing employees. In relation, the level of service your customers receive is almost always influenced by the culture and climate of your organization. This competency can be especially insightful if your organization is experiencing customer service related issues or problems working together internally.
Laws and Ethics?. Who?s Kidding Who?
Years ago I read an article by a renowned psychologist wherein he wrote his studies found one percent of all human beings would never lie, cheat or steal. One percent would always lie, cheat or steal and given the right set of circumstances, the rest of us would likely lie, cheat and/or steal.
No Credit is Due: Bad Telemarketing
Just a few minutes ago I was debating what to write about this week -- something interesting, perhaps, or maybe it was about time to give some credit to snails, I thought. Then, by some random stroke of luck, fate or writer's lightning (a term I created just now), I received a phone call from a credit card company...
Mind Your Own Damn Business Sexcess
You have certainly heard the expression "mind your own damn business" used in a multitude of contexts. The most typical being the don't kiss and tell type statements, often uttered by responsibly private individuals about their love life.
Work Ethics ? A Paradigm Shift
Work ethics is a hot topic in today's business and educational worlds. Yet, how do we define this hybrid phrase with the word work meaning more than a specific outcome and the word ethics being more than the values that enhance that outcome?
Six Reasons to Give
If you run a business, you undoubtedly feel many pressures
on your time and money. Why would you want to add "giving
to the community" to your "to do" list? Here are six reasons
.....
Business Ethics: Functional Choices
Years of experience have taught me there is no such thing as "Business Ethics". If a person isn't ethical in the rest of their lives, their business ethics aren't worth the shoe leather they've worn out either.
Vice of Buggery at FTC
At the Federal Trade Commission we have seen attorneys who suffer from the vice of buggery get promoted to higher and more important international divisions. Now then, are these attorneys who have personal sexual problems and are breaking the laws of sodomy not wanted in the main group of Federal Trade Commission Employees? Is the FTC worried about sexual harassment laws? Are they worried about on-the-clock Men's Restroom "Quickies" and the possibility of the need for an unflattering in-house employee investigation becoming public? Is the Federal Trade Commission afraid to fire these buggerists, for some employee unlawful termination suit? Is buggery so pervasive that the FTC has to invent new titles for these guys so they can be moved up in rank to other divisions? If so why doesn't the FTC adopt a "Don't Ask, Don't Tell Policy" to prevent special treatment of those who suffer from buggery? Can't the FTC get psychological help for these men who thrust their penis up another man's rectum? Obviously these human organs were not set up to do that. We know that the FTC continually screw with the natural order of competition and evolutionary progress of efficient competition and survival of the fittest businesses. But why are they now trying to modify humankind's evolution?
Tales from the Corporate Frontlines: Diversity And Success, In The Workplace
This article relates to the Diversity in the Workplace Competency, commonly evaluated in employee satisfaction surveys. This competency explores whether your organization provides understanding and supports interaction among diverse population groups while respecting individuals' personal values and ideas. Research shows that by fostering a climate where equity and mutual respect are intrinsic, an organization can create a success-oriented, cooperative and caring work environment that draws intellectual strength and produces innovative solutions from the synergy of its people.
Diversity
I know that diversity has been a big topic of conversation ever since the early 1990s when research supported the demographics that by the year 2000, 85% of the entering workforce would be female, African-American, Asian-American, Latino, or new immigrants. The fact that white males would be a minority entering the workplace was a wake up call for corporate America.
The Deception Perception: Pay No Attention to the Man Behind the Curtain
The Deception Perception
|
