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So I have become aware of a massive Ponzi scheme running in Spain. I suspect it's being run by a couple of Russians. This is how it works:
* They offer 25% ROI per 40 days. Some imaginary tax is applied to the ROI, so it boils down to 19%.
* Maximum deposit 1.000.000 EUR
* Money is 'invested' on the stock exchange. You and I know better of course.
* They 'hire' bunches of people on commission basis who spend days on end making phone calls and then following up with personal visits in three-piece suits.
* The amount of offices and marketeers for this company is growing exponentially.
My first reaction was, 'wow, there are still suckers who fall for this?' My second was, now what, if anything?
I know one guy who works there. He gets 800 euro per months as fixed salary, and a 15% commission on every euro that he hauls in. Last month he made 6000 Euros. He did this by signing up all his friends and family in his village just outside the city, with their savings. I asked him if his job didn't smell fishy at all, and suggested that he would die a violent death should his acquaintances figure out what was going on. He said, "Well, I didn't have any money, and if it comes crashing down, I'll escape to London and find a real job". So, the marketeers are at least superficially aware that something is not right.
800 Euros per month base salary is a fortune for the locals, of which up to 50% is unemployed. And you're guaranteed to get hired, so they are accessing a massive network. Taking advantage of a dire situation.
Now, the way these Ponzi schemes work, anyone halfway or early in the Ponzi cycle will get most of their money back, or more, and the biggest suckers are the ones who 'invest' somewhere towards the end of the life-cycle. As it's still growing exponentially, the cycle is still 'healthy', as far as fraud goes anyway.
I was thinking to myself, can anything be done at this stage, before even more suckers 'invest' their money? Is this the 'right' thing to do? What of the consequences (to me)? There is no Ponzi police. I'm sure the contractual agreement is superficially legit.
Any thoughts?
* They offer 25% ROI per 40 days. Some imaginary tax is applied to the ROI, so it boils down to 19%.
* Maximum deposit 1.000.000 EUR
* Money is 'invested' on the stock exchange. You and I know better of course.
* They 'hire' bunches of people on commission basis who spend days on end making phone calls and then following up with personal visits in three-piece suits.
* The amount of offices and marketeers for this company is growing exponentially.
My first reaction was, 'wow, there are still suckers who fall for this?' My second was, now what, if anything?
I know one guy who works there. He gets 800 euro per months as fixed salary, and a 15% commission on every euro that he hauls in. Last month he made 6000 Euros. He did this by signing up all his friends and family in his village just outside the city, with their savings. I asked him if his job didn't smell fishy at all, and suggested that he would die a violent death should his acquaintances figure out what was going on. He said, "Well, I didn't have any money, and if it comes crashing down, I'll escape to London and find a real job". So, the marketeers are at least superficially aware that something is not right.
800 Euros per month base salary is a fortune for the locals, of which up to 50% is unemployed. And you're guaranteed to get hired, so they are accessing a massive network. Taking advantage of a dire situation.
Now, the way these Ponzi schemes work, anyone halfway or early in the Ponzi cycle will get most of their money back, or more, and the biggest suckers are the ones who 'invest' somewhere towards the end of the life-cycle. As it's still growing exponentially, the cycle is still 'healthy', as far as fraud goes anyway.
I was thinking to myself, can anything be done at this stage, before even more suckers 'invest' their money? Is this the 'right' thing to do? What of the consequences (to me)? There is no Ponzi police. I'm sure the contractual agreement is superficially legit.
Any thoughts?
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