Top Investor Traps (5 of 10) Top Investor Traps (7 of 10)

Top Investor Traps (6 of 10)

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Ponzi Schemes. Despite the heightened awareness of Ponzi schemes following Bernard Madoff’s multi-billion dollar fraud and 150-year prison sentence, these scams continue to trap investors. The Ponzi scheme is a house-of-cards swindle in which high returns are paid to initial investors out of the funds of later investors, who end up losing all or most of their money to the promoter.
Source: http://www.nasaa.org/NASAA_Newsroom/Current_NASAA_Headlines/11129.cfm