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Ponzi scheme?
Nov 25, 2009 10:40 PM 5526 Views
(Updated Dec 17, 2009 03:17 AM)

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I was skeptical about the company's methodology from day one.  The repayment was huge, which is not possible unless you're running a ponzi.  If you're not sure what ponzi is, look it up on the web.  A ponzi scheme works ONLY until it gets a regular flow of investors, and once that stops, they're unable to pay anyone.  The basic concept of ponzi is that it does not do any legitimate business and just rotates the money it receives from the new investors; and that's the reason why ponzi is illegal in many countries, including India and the United States (and I'm sure there are many more).


I hope this company could return the principle amount invested by it's investors.  What we need to understand is if a company can run a business and provide such returns, why wouldn't someone want to run that business himself and keep all the profit????  I mean, just think about it.  If you can invest Rs. 130, 000 and make over Rs. 7, 500 in PROFITS each MONTH (!!!!!), why wouldn't you want to run the business yourself and keep the entire profit?  This would make sense to any sane person.


I'm not sure if the company could return to it's position again, but I really hope that it does.  What the government needs to do here is liquidate all of their assets and repay the investors, and make sure these guys aren't spared.  They should be prosecuted to the maximum extent of the law.  Bernard Madoff (a person in the US) was jailed for 150 YEARS upon being caught running a ponzi.  150 years is insane, I know, but it ensures that the criminal spends his entire life in prison, which to me is upright.  If you don't believe me, check out this New York Times news article:


https://nytimes.com/2009/06/30/business/30madoff.html


Abdul.


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