There is this scheme in our townYou buy a certificate containing five names for sh 500. The seller appears last on this list. You are then asked to send another sh 500 to the coordinator of the scheme and sh 1,500 to the person appearing the top of the list. Your total investment comes only shs 2,500. When these monies are paid, you get another five certificates bearing your name at number five on the list. The other people have been moved up one slot each and the person who was at the top removed. Now you sell these papers to five new recruits at sh 500 each. At that point, you recover your sh 2500 , and the numbers begin multiply . When the five certificates with your name at number five are sold, they generate 25 ( 5 x 5) more with you at position four. When these are sold, they produce another 125(25x5) with your name at number three. The next level has 625 (125 x 5) certificates “out there”. Now each of these 3,125 new members will pay you sh 1,500 making at total of sh 4,687,500!
2006-10-19 01:13:58 · 7 answers · asked by Omar 1 in Science & Mathematics ➔ Mathematics
It is not an investment, it is a pyramid scheme. And it is a very bad idea. Yes it may be illegal, but that is just the tip of what is wrong. First of all you have to get something for an investment. You invest in land you own the land (or part of it). You invest in a house you own the house. You invest in stock and you own part of the company. You get the idea..? A pyramid scheme you own nothing. All you did was send some guy some cash, and bought the right to be part of this scam. After you enter in the scheme then you have to try and push this scam on other people right? This means you will have to start bugging your friends and family just to try and make the sale. It may sound attractive at first, but it is not. If it were that easy to get rich, wouldn't everyone be doing it. Don't be a sucker. Take the money you would have spent and truely invest it. You will not see "those kind of returns" (not that you would have anyway), but at least your money will actually make you some money. There are a lot of mutual funds that you can start with that small of an initial investment, and then just keep adding. Do some research, talk to an advisor. Don't throw away your cash.
2006-10-19 01:28:35 · answer #1 · answered by Craig B 4 · 2⤊ 0⤋
Do a search on "Pyramid scheme". It sounds great, but the reality is that only a few at the 'top' get the money. It is illegal in the U.S. and probably most every where else.
"If it sounds too good to be true, it probably is"
2006-10-19 08:23:12 · answer #2 · answered by words_smith_4u 6 · 0⤊ 0⤋
Pyramid scheme and it's very very illegal....so if you wish to spend your newfound wealth on a lawyer and fines and a possible prison term ...I say go for it.....It's called mail fraud or something like that.
2006-10-19 08:16:17 · answer #3 · answered by ? 6 · 1⤊ 0⤋
his will only work for the first few persons who starts. Later there will be no people left that has not joined the game already.
2006-10-19 09:17:13 · answer #4 · answered by gjmb1960 7 · 0⤊ 0⤋
As a pyramid scheme it is illegal
2006-10-19 08:20:08 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Sounds like one of those pyramid scams....steer clear!!!!
2006-10-19 08:17:59 · answer #6 · answered by bstarsky 1 · 0⤊ 0⤋
IT IS A SCAM. AVOID IT. DON'T BE A FOOL'
2006-10-19 08:22:20 · answer #7 · answered by crane1951@sbcglobal.net 4 · 0⤊ 0⤋