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How many of you have heard of Ponzi schemes? Named after Charles Ponzi, these particular schemes promise investors artificially high rates of return with little or no risk. However, there is little or no actual business activity that produces revenue. To pay these investors, the scammer convinces new people to join. They then pay existing investors with funds collected from new investors, keeping a chunk of money for themselves. Many of these scams tend to be very deceptive, which has led to the
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