Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
Ponzi scheme
A fraudulent investment scheme in which money contributed by later investors generates artificially high dividends for the original investors, whose example attracts even larger investments. ( Money from the new investors is used directly to repay or pay interest to old investors, usu. without any operation or revenue-producing activity other than the continual raising of new funds. This scheme takes its name from Charles Ponzi, who in the late 1920s was convicted for fraudulent schemes he conducted in Boston. Cf. PYRAMID SCHEME.
Scheme
1. A systemic plan; a connected -or orderly arrangement, esp. of related concepts <legislative scheme>. 2. An artful plot or plan, usu. to deceive others <a scheme to defraud creditors > .
common scheme
See COMMON DESIGN.
endless-chain scheme.
See PYRAMID SCHEME.
pyramid scheme
A property-distribution scheme in which a participant pays for the chance to receive compensation for introducing new persons to the scheme, as well as for when those new persons themselves introduce participants. ( Pyramid schemes are illegal in most states. - Also termed endless-chain scheme; chain-referral scheme; multilevel-distribution program; pyramid distribution plan. Cf. PONZI SCHEME.