Ponzi Perpetrators Case Study Solution

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Ponzi Perpetrators are described as a charming dealer who put more emphasis on certain things that are associated with them either professionally or in a social environment. According to Mitchell Zuckoff, Professor at University of Boston and Jory and Perry (2011) “Ponzi perpetrators are self-delusional.” The culprits of Ponzi schemes are most likely talented to betray investors and are considered to be overweening. These Ponzi scammers approach to those individual in a convincing manner and they would gradually misuse the trust of those innocent people. Furthermore, in order to keep the business alive, very often perpetrators are enrolled in an offshore center where the law is not harsh. It is found that the income for the staff is extremely low, and those staff of Ponzi perpetrators are mainly members of the family or colleague. One of the reasons to recruit them is essential to keep the scheme as a secret and the greater the perpetrators have a relation to the state the more fearless they are concerning the continuity of their transaction without being exposed.…show more content…
Usually, the existing investors would be paid from the money collected by new investors, this cycle would continue to exist as long as there is sufficient finance. In the offline world, many identical schemes are still operating for more than 150 years and are refers to Ponzi schemes following the famous man Charles Ponzi who deceived thousands of people in 1919. Although these schemes are unlawful there is still a significant amount of operational HYIP sites at any point in time and this is referred as ‘postmodern’. Stajano and Wilson (2012) recognized seven principles common to offline fraud that can be converted into an online scam and a minimum of five of these principles applied to the HYIP investment and they are listed as

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