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Noor Ul Ain Afzal, Muhammad Kamran Abid, Muhammad Fuzail, Naeem Aslam, and Nasir Umer. "Ethereum Hidden Dangers: Ponzi Scheme Detection in Smart Contracts Using SourceP." Kashf Journal of Multidisciplinary Research 2, no. 04 (2025): 81–94. https://doi.org/10.71146/kjmr390.
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Ponzi schemes have surfaced on the Ethereum platform as blockchain technology continues to gain traction. Using smart contracts, these schemes, also referred to as smart Ponzi schemes, have caused significant financial losses and adverse effects. Byte code features, op code characteristics, account qualities, and smart contract transaction behavior are the main focus areas for current Ethereum smart Ponzi scheme detection techniques. However, these methods often do not record the behavioral features of the Ponzi scheme, resulting in high false alarm rates and poor identification accuracy. In this study, we provide the source P. Source P is a unique way of knowing intelligent Ponzi schemes on the Ethereum platform, passed by dataflow. Using the intelligent contract's source code as a function eliminates the difficulty of collecting data and extracting functions from available identification methods. In particular, we convert the code into statistical flow diagrams, apply educated models, and use code representations to create classification models for the detection of Ponzi schemes. Experimental results show that SourceP outperforms cutting-edge technology in terms of sustainability and effectiveness, achieving an F1 score of 92.4% and a recall of 90.1% in Ethereum's smart Ponzi schema detection. Ponzi, Blockchain, Source Code, Intelligent Contracts.
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Cristina, CHIHAI. "PRACTICAREA ILEGALĂ A ACTIVITĂȚII FINANCIARE – PREMISELE ȘI OPORTUNITATEA INCRIMINĂRII." STUDIA UNIVERSITATIS MOLDAVIAE Științe Sociale, no. 3(143) (2021): 160–66. https://doi.org/10.5281/zenodo.4572493.
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În prezentul articol ne propunem ca scop să evidențiem oportunitatea și justețea complinirii Codului penal al Republicii Moldova cu art.241<sup>1</sup>, care incriminează fapta de practicare ilegală a activității financiare. <em>Ab initio</em>, este notabil de statuat că în conformitate cu art.126 alin.(2) lit.b) din Constituția Republicii Moldova, statul trebuie să asigure libertatea comerțului şi activității de întreprinzător, protecția concurenței loiale, crearea unui cadru favorabil valorificării tuturor factorilor de pro­ducție. Astfel, <em>in globo</em>, contemplăm că existența cadrului reglementar adecvat asigură realizarea unei politici financiare, fiscale și economice stabile și echitabile. Așadar, prin prezentul demers urmărim analiza incrimi­nării faptei de practicare ilegalăa activității financiare prin prisma premiselor, factorilor și contextului istorico-evolutiv care au contribuit la adop­ta­rea acestei norme.
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Vega, Eduardo. "Marketing viral político dentro del esquema Ponzi." aDResearch ESIC International Journal of Communication Research 14, no. 14 (2016): 108–25. http://dx.doi.org/10.7263/adresic-014-01.
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Vega, Eduardo. "Marketing viral político dentro del esquema Ponzi." aDResearch ESIC International Journal of Communication Research 14, no. 14 (2016): 108–25. http://dx.doi.org/10.7263/adresic-016-01.
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Marohn, Charles L. "Suburban Ponzi Scheme." Leadership and Management in Engineering 13, no. 3 (2013): 181–89. http://dx.doi.org/10.1061/(asce)lm.1943-5630.0000234.
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Yuspin, Wardah, and Qolbi Hanif Fadhlulloh. "Ponzi Scheme: Risk and Regulation in Indonesia." International Journal of Social Science Research and Review 5, no. 10 (2022): 339–45. http://dx.doi.org/10.47814/ijssrr.v5i10.599.
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This study aims to determine the historical crime of the Ponzi Scheme. The benefits of this research arecan be a study for other authors, including universities, other educational institutions and the public against the crime of the Ponzi Scheme. The research method uses qualitative by collectingdescriptive data which later the results of the research will contain data excerpts to provide an overview of the presentation in the study. The results show that the Ponzi Scheme created by Charles Ponzi caused enormous damage to both the financial industry and the general public.
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Amoah, Benjamin. "Mr Ponzi with Fraud Scheme Is Knocking: Investors Who May Open." Global Business Review 19, no. 5 (2018): 1115–28. http://dx.doi.org/10.1177/0972150918788625.
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Investors’ confidence is often abused by individuals who take advantage of investors on the financial market through fraudulent investment schemes. This article analyses factors that expose investors to Ponzi schemes. This study adopts a logistic regression model to assess the chances of investors falling prey to fraudulent investment schemes. This relationship is hypothesized as a function of affinity and trust, risk appetite, investment knowledge, understanding of Ponzi scheme, awareness of failed investment company, and demographic factors. The article reveals that affinity and trust, investment knowledge, awareness of investment company failure, understanding of Ponzi and educational level significantly affect the chances of an investor being victim or a non-victim of a Ponzi scheme. Demographic factors exhibit the expected relationship although not significant. The investment market can in no way be free of Ponzi schemes. Regulators of financial markets would have to intensify education of investors on how to identify and avoid Ponzi schemes. By analysing investors’ Ponzi victimization factors, this article adds to our empirical understanding of the factors that tend to put investors at risk of falling prey to Ponzi schemes.
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Abdul Ghani, Muhammad Takiyuddin, Bahyah Abdul Halim, Syamsul Azri Abdul Rahman, Nor Akmar Abdullah, Asyraf Afthanorhan, and Nurwahida Yaakub. "Overconfidence bias among investors: A qualitative evidence from Ponzi scheme case study." Corporate and Business Strategy Review 4, no. 2 (2023): 59–75. http://dx.doi.org/10.22495/cbsrv4i2art6.
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This study aims to examine the prevalence of overconfidence bias in the decision-making process of Malaysian investors in Ponzi schemes. We explore a well-documented behavior that distorts the investor’s judgment, leading to a future event’s miscalculation — a psychological bias known as overconfidence bias (Kuranchie-Pong & Forson, 2022). Our study offers a novel viewpoint by investigating the hard-to-reach type of investor, the Ponzi scheme investors using the behavioral finance theory and qualitative method. Therefore, this investigation employed qualitative reasoning, which could also be an example of applying thematic analysis using ATLAS.ti. This study’s findings indicate that Ponzi scheme investors exhibit overconfidence bias in investing in the Ponzi investment schemes. We unraveled three types of overconfidence bias that prevail in the Ponzi scheme investors’ decision process. Acknowledging its limitations as a qualitative inquiry, the authors call for a joint effort to explore this field of study further. This emerging area of investor behavior research will afford valuable knowledge that could resolve the mysteries behind the never-ending issue of the Ponzi investment scheme.
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Moch Naufall Nurfauzan Akmal and Jejen Hendar. "Pengawasan terhadap Praktik Money Game dengan Skema Ponzi di Platform TikTok Ditinjau dari Undang-Undang Nomor 21 Tahun 2011 tentang Otoritas Jasa Keuangan." Bandung Conference Series: Law Studies 4, no. 2 (2024): 1111–18. http://dx.doi.org/10.29313/bcsls.v4i2.15717.
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Abstract. . A Ponzi scheme is an investment method using a pyramid model where profits paid to investors come from their own money or funds from newly recruited members. The allure of Ponzi schemes lies in the promise of high returns and simplicity. This journal aims to examine the supervision and legal consequences for individuals involved in illegal investments with Ponzi schemes in Indonesia. The goal is to provide the public with information on how illegal Ponzi scheme investments are supervised under Law Number 21 of 2011 concerning the Financial Services Authority (OJK) and other regulations. The research method used is normative legal research with a conceptual statutory approach, collecting legal materials from primary, secondary, and tertiary sources. The analysis technique is descriptive qualitative. The study reveals that the OJK has undertaken various surveillance efforts on illegal Ponzi scheme investments, including establishing an investment alert task force and implementing preventive and repressive strategies. However, these supervisory actions have not fully addressed illegal Ponzi scheme investments, as the term "Ponzi scheme" is not explicitly recognized or regulated in Indonesian law. It is suggested that the OJK take concrete actions by incorporating additional provisions specifically prohibiting Ponzi schemes in Indonesian legislation. The legal consequences for contracts and participants in these schemes remain unclear, necessitating further regulation. the subject of illegal investment agreements with pinzi schemes are null and void. Abstrak. Skema Ponzi adalah metode investasi yang menggunakan model piramida di mana keuntungan yang dibayarkan kepada investor berasal dari uang mereka sendiri atau dana dari anggota baru yang direkrut. Daya tarik dari skema Ponzi adalah janji keuntungan besar dan kemudahan. Jurnal ini bertujuan untuk meneliti pengawasan dan konsekuensi hukum bagi individu yang terlibat dalam investasi ilegal dengan skema Ponzi di Indonesia. Tujuannya adalah memberikan informasi kepada publik mengenai pengawasan praktik investasi ilegal dengan skema Ponzi berdasarkan Undang-Undang Nomor 21 Tahun 2011 tentang Otoritas Jasa Keuangan (OJK) dan peraturan lainnya. Metode penelitian yang digunakan adalah penelitian hukum normatif dengan pendekatan perundang-undangan konseptual, mengumpulkan bahan hukum dari sumber primer, sekunder, dan tersier. Teknik analisis yang digunakan adalah deskriptif kualitatif. Studi ini menunjukkan bahwa OJK telah melakukan berbagai upaya pengawasan terhadap investasi ilegal dengan skema Ponzi, termasuk membentuk satgas waspada investasi serta menerapkan strategi preventif dan represif. Namun, tindakan pengawasan ini belum sepenuhnya mengatasi kasus investasi ilegal dengan skema Ponzi, karena istilah "skema Ponzi" belum secara eksplisit diakui atau diatur dalam hukum Indonesia. Disarankan agar OJK mengambil tindakan konkret dengan menambahkan ketentuan khusus yang melarang skema Ponzi dalam perundang-undangan Indonesia. Konsekuensi hukum bagi kontrak dan peserta dalam skema ini masih belum jelas, sehingga diperlukan pengaturan lebih lanjut.
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Firda Nosita. "The Role of Personality and Social Networks on Ponzi Investment Decision: A Review." Journal of Information Systems Engineering and Management 10, no. 53s (2025): 402–11. https://doi.org/10.52783/jisem.v10i53s.10887.
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Introduction: Ponzi schemes are popular and increasingly sophisticated schemes to defraud people by promoting get-rich-quick fantasies. Many people take advantage of this kind of investment opportunity because of the promise of very high returns even without risk. Social media exposure, increasing lifestyle and the phenomenon of fear of missing out also encourage individuals to fulfill their needs and the opportunities to get rich in quick. Objectives: The paper attempts to provide review of the role of an individual’s personality and social networks in shaping their willingness to join Ponzi scheme by linking the gullibility theory and theory of planned behavior. The paper is expected to provide ideas for further research on the role of personality and social networks in Ponzi scheme investment decisions. Methods: To structure the discussion, a conceptual review of Ponzi and the related theory is made to enhance the understanding of supporting explanation of why people trapped on Ponzi. in addition, the paper provides the role of internet and social media as promotion media nowadyas. The last section refers to generation’s problem as one of the possible reasons why people fall prey in Ponzi. Results: Personality traits as one factors in gullibility theory which can explain willingness to invest in Ponzi scheme. The motivation to join a risky investment are either internal or external pressure. Social networks may influence the decisions, particularly in today’s internet and social media environment. Generational differences mean different character, traits, motives and prreferences. It also relates to the way they view money, needs and wants. Conclusions: Personality traits and social networks play a role in encouraging individuals to join risky investmet such as Ponzi scheme. Personality traits are also related to one’s and may depend on how their social networks encourage behavioral tendencies. Generation’s problem is another factor to what extent people willing to join Ponzi scheme. Empirical study on the role of personality traits across generations and social networks on Ponzi investment decisions should be considered as future research agenda.
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Chen, Yizhou, Heng Dai, Xiao Yu, Wenhua Hu, Zhiwen Xie, and Cheng Tan. "Improving Ponzi Scheme Contract Detection Using Multi-Channel TextCNN and Transformer." Sensors 21, no. 19 (2021): 6417. http://dx.doi.org/10.3390/s21196417.
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With the development of blockchain technologies, many Ponzi schemes disguise themselves under the veil of smart contracts. The Ponzi scheme contracts cause serious financial losses, which has a bad effect on the blockchain. Existing Ponzi scheme contract detection studies have mainly focused on extracting hand-crafted features and training a machine learning classifier to detect Ponzi scheme contracts. However, the hand-crafted features cannot capture the structural and semantic feature of the source code. Therefore, in this study, we propose a Ponzi scheme contract detection method called MTCformer (Multi-channel Text Convolutional Neural Networks and Transofrmer). In order to reserve the structural information of the source code, the MTCformer first converts the Abstract Syntax Tree (AST) of the smart contract code to the specially formatted code token sequence via the Structure-Based Traversal (SBT) method. Then, the MTCformer uses multi-channel TextCNN (Text Convolutional Neural Networks) to learn local structural and semantic features from the code token sequence. Next, the MTCformer employs the Transformer to capture the long-range dependencies of code tokens. Finally, a fully connected neural network with a cost-sensitive loss function in the MTCformer is used for classification. The experimental results show that the MTCformer is superior to the state-of-the-art methods and its variants in Ponzi scheme contract detection.
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Uppiah, Valerie. "A critical examination of the regulation of Ponzi scheme in Mauritius." International Journal of Law and Management 60, no. 6 (2018): 1393–400. http://dx.doi.org/10.1108/ijlma-08-2017-0201.
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Purpose The purpose of this paper is to analyse the regulation of the financial crime of Ponzi scheme in Mauritius. Contrary to money laundering which has a legal framework to combat it, for Ponzi scheme, there is no specific legal mechanism to combat this particular financial crime. Therefore, the aim of the paper is to provide for an analysis of Ponzi scheme which includes, inter alia, the definition of a Ponzi scheme, its modus operandi and how it should be tackled. Focus will be placed on devising a specific legal framework for it in Mauritius. Design/methodology/approach The research method used to conduct this research and write this paper is a black letter legal research method. An analysis of several laws and cases is carried out so as to provide for the legal background of the research. Findings The investigation conducted in this paper will lead to the conclusion that Mauritius has to devise a law which will specifically combat Ponzi schemes. This law shall provide for the ways to counter this financial crime as well as the duties of the various financial supervisory bodies. Originality/value The paper provides for an analysis of the operation of Ponzi scheme in the Mauritian context. The paper also examines the existing legal framework that combats this financial crime in Mauritius and highlights its strengths and weaknesses.
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Gupta, Saloni. "Warding off the Ponzi Trap: Eschewing the Quick Buck Promise that can Dupe You." Journal of Business Management and Information Systems 2, no. 2 (2015): 19–21. http://dx.doi.org/10.48001/jbmis.2015.0202002.
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A Ponzi scheme is an investment fraud that involves illegal, unregistered pooling of investment. Ponzi schemes are named after Charles Ponzi, an Italian who duped thousands of US investors in 1920s by promising to double their money in 90 days. The Ponzi operators entice investors by offering unusually high returns in a very short time or/& guaranteed returns consistently over a long period of time. Understanding how scam artists operate a Ponzi and ticking some basic check-boxes can help you to side-step the Ponzi trap, protect your hard money and reach your financial goals.
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Rima, Eka Putri, Surono Agus, and Subhandi Bakhtiar Handar. "Legal Protection for Victims of Illegal Investment Fraud Using the Ponzi Scheme in Indonesia." International Journal of Social Science and Human Research 07, no. 05 (2024): 2772–80. https://doi.org/10.5281/zenodo.11180881.
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This study was conducted through the investigation and analysis of additional criminal reasons for rulgi can be applied as an ulpaya perlindungan victim of investment with a ponzi scheme. Also, reviewing and analyzing Hukum Perlindungan for Victims of Investigative Pellnipulan with Ponzi Skema. This research uses a Normative Juridical approach. While the penelitian that is carried out by pelnelliti is the case study (Casel Approach). The results of this study show two things, namely: 1) At present there are only a few regulations that more or less allude to the discussion of ponzi, including: Law No. 7 of 2014 concerning Trade, Law No. 21 of 2008 concerning Sharia Banking, Law No. 19 of 2016 Jo. Law No. 11 of 2008 concerning Electronic Information and Transactions Government Regulation No. 82 of 2012 concerning the Implementation of Electronic Systems and Transactions. Criminal provisions against investment activities with ponzi / fraudulent schemes are regulated in Article 378 of the Criminal Code and are very closely related to crime and the scope of criminal liability, 2) Compensation as one type of criminal sanction adopted in the new Criminal Code does not provide further explanation about the amount.
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Aluko, Oluwasegun Peter, and Ibukun Oluwakemi Olawuni. "A Socio-Historical Perspective on Ponzi Schemes and Development in Nigeria: The Role of the Christian Church." World Journal of Social Science 8, no. 2 (2021): 41. http://dx.doi.org/10.5430/wjss.v8n2p41.
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This paper is a study on Ponzi schemes, development and the Christian church in Nigeria. It traced the emergence of Ponzi schemes in Nigeria. The paper considered the practices of Mavrodi Mondial Movement (MMM), being one of the strongest Ponzi schemes in Nigeria. It assessed the impact of this Ponzi scheme on development in the country. It also looked into the role played by the Christian Church during the period of the scheme’s existence in the country. The paper, however concluded that, despite the people involved in the scheme being interested in supposedly helping people (including those in the scheme and the less privileged), it is contrary to the ethos of Christianity that touches on labour and its corresponding success. The data collected for the study were analysed using socio-historical approach.
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Rendy Claudio Krisna Iroth, Nadhira Zahra Farida, and Ilham Daffi Syabana. "Perbandingan Pengaturan Hukum Terkait Skema Ponzi : Perspektif Indonesia dan Amerika Serikat dalam Perlindungan Investor." JURNAL HUKUM, POLITIK DAN ILMU SOSIAL 4, no. 1 (2025): 62–83. https://doi.org/10.55606/jhpis.v4i1.4826.
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In Indonesia, the use of technology to make investments is getting easier as time goes by. However, it is unfortunate that some companies and individuals use this technology to run illegal businesses without a license from the Financial Services Authority. One form of illegal business that is on the rise is the Ponzi scheme system. A Ponzi scheme is a form of financial fraud in which the perpetrator offers a high rate of return/profit to investors, which is paid using newly incoming funds from subsequent investors. This research uses normative juridical research method, which is a legal research method conducted with the aim of finding legal principles and theories associated with existing practices in the field. This research is conducted by comparing the legal approach between the regulations in Indonesia and the United States related to Ponzi Schemes. Considering that in Indonesia the legal arrangements regarding Ponzi Schemes are generalized which makes Indonesia have no legal certainty for the protection of investors, through comparison with one of the countries with developed economies, namely the United States. This aims to provide a better understanding of the different legal approaches and efforts that can be made to overcome the Ponzi Scheme problem and can provide education to the public who may have a layman's understanding of Ponzi scheme investments.
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Petsko, Gregory A. "Life is a Ponzi scheme." Genome Biology 10, no. 1 (2009): 101. http://dx.doi.org/10.1186/gb-2009-10-1-101.
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Hidajat, Taofik. "Financial Literacy, Ponzi and Pyramid Scheme in Indonesia." Jurnal Dinamika Manajemen 9, no. 2 (2018): 198–205. http://dx.doi.org/10.15294/jdm.v9i2.16261.
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The aim of this research is to examine empirically the influence of financial literacy on investment decisions through ponzi and pyramid schemes. Variables embedded were Social Economic Characteristics, Financial Literacy and Investments Decision. The population of this study were the people who invest their money through a Ponzi scheme and pyramid scheme. The sampling method applied was a snowball sampling of 43 respondents. Based from the research result, it was concluded that social economic characteristics, positively influences financial literacy. While, financial literacy influenced investment decision through ponzi and pyramid schemes. It is freaky because the people with good financial literacy (job occupation, education, gender and income) are still trapped under these junk investment trick modes. It was assumed that there were the other factors as the example, psychological factor like individual greed that influenced the financially literate people to invest through both junk investment schemes. It was also suggested a modification in financial literacy measuring because the existing financial literacy measuring tools had not been able to accommodate the understanding of ponzi and pyramid scheme investment.
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Haryadi, Bambang, Imam Wahyudi, and Nur Hayati. "Uncovering the Dark Side of Ponzi Schemes Through Money Game." Jurnal Ilmiah Akuntansi dan Bisnis 17, no. 2 (2022): 201. http://dx.doi.org/10.24843/jiab.2022.v17.i02.p02.
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Ponzi schemes with new looks and faces can divert people's views against the suspicions of investment organizers under the guise of Ponzi schemes. The purpose of this study is to reveal the dark side of the practice of Ponzi schemes through money games from the user's perspective. This study uses a qualitative method with a phenomenological approach, the selection of this method is used to achieve the research objectives. Collecting data using observation, interviews, and documentation. The results show, HIPO implementing a Ponzi scheme under the guise of a money game, this can be seen in the work system used by recruiting people and raising funds through offering investment packages as a trap as well as containing elements of gambling. Symptoms of the end of the HIPO as a fraudulent investment are shown through changes to the system and policies by the founders so that members cannot withdraw funds.
 Keywords: ponzi scheme, money game, dark side
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Bosley, Stacie, and Maggie Knorr. "Pyramids, Ponzis and fraud prevention: lessons from a case study." Journal of Financial Crime 25, no. 1 (2018): 81–94. http://dx.doi.org/10.1108/jfc-10-2016-0062.
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Purpose This paper aims to empirically identify factors that increase consumer vulnerability to pyramid scheme fraud and compares/contrasts dynamics and implications of pyramid and Ponzi fraud. Design/methodology/approach Statistical techniques, including multiple regression, are used to analyze participant data (with over half a million individuals) from a now-defunct US-based pyramid scheme, Fortune Hi-Tech Marketing. Findings Findings suggest that this pyramid scheme flourished in counties with identifiable affinity groups: religious communities, Hispanic populations and certain age cohorts (e.g. recently retired). Recruitment success varied significantly between geographic regions, with the highest levels of recruitment in the South. While prior research finds a possible positive relationship between education and Ponzi participation, this is not the case in the pyramid scheme studied. Furthermore, while Ponzi schemes might be pro-cyclical, collapsing during contractions when participants seek to extract their money, this pyramid scheme exhibited counter-cyclical behavior. Practical implications State and federal regulators, as well as consumer protection advocates, should learn from analysis of past pyramid scheme cases. Such analysis informs allocation of scarce resources and supports the case for targeted, active education. Clarifying differences between Ponzi and pyramid fraud helps to support clear and effective intervention. Originality/value This is the first research to analyze national participant-level data from a pyramid scheme to inform future action. While it confirms some past findings, such as the connection to affinity fraud, it adds to collective knowledge on pyramid schemes and the differences between pyramid and Ponzi fraud.
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Flynn, Kevin, Phyllis Belak, and Sean Andre. "Sir Allen Stanford: inmate # 35017-183; a case study of a Ponzi scheme and its aftermath." CASE Journal 16, no. 4 (2020): 433–54. http://dx.doi.org/10.1108/tcj-07-2019-0069.
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Research methodology This case involves a real-life Ponzi scheme perpetrated by Sir Allen Stanford, a man who bribed Antiguan regulators and a certified public accountant firm to perpetuate his scam. The case includes the process of making victims whole, which involves a court-initiated clawback process: taking back payouts to investors or charities to redistribute the funds to other fraud victims who did not receive their fair payout. Students apply theory learned in an upper-level fraud or forensic accounting course. Finally, the case addresses the aftermath of a fraud scheme. Case overview/synopsis Ponzi schemes – one of the most common types of investment fraud – have caused investors to lose billions of dollars. Because of the prevalence of Ponzi schemes and the ramifications to investors, it is important for business students to understand the nature of these schemes and to learn how to recognize them. As future business professionals, students will be charged with recognizing a Ponzi scheme early and uncovering it before investors lose their investments. Complexity academic level This case is designed for upper-level undergraduate students or graduate students taking a fraud or forensic accounting course, which is best introduced after professors cover Ponzi schemes and also these concepts: fraud triangle, fraud diamond and fraud red flags.
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Schoen, Edward J. "Par Funding: A Fabulous Fraud Founded in Philly." Journal of Business Ethics Education 20 (2023): 227–40. http://dx.doi.org/10.5840/jbee20232014.
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This case describes a recent iteration of the Ponzi scheme originated in 1920 by Charles Ponzi: creating a plausible investment, attracting investors, using the money from more recent investors to pay off earlier investors, and earning a substantial profit, estimated to be $15 million (worth $220 million today).1 While not as big as Bernie Madoff’s Ponzi scheme, as a result of which he was sentenced to 150 years in prison and ordered to pay restitution of $170 billion to his victims,2 the Federal district court in Miami was asked to order Par Funding’s cofounders, Joseph W. LaForte and his wife, Lisa McElhone, to pay $337 million to Par Funding investors and to declare they engaged in a Ponzi scheme in defrauding those investors.3 Ultimately the Federal district court in Miami ordered Par cofounders to pay “$219 million in ‘ill-gotten gains,’ fines and interest so the funds can be used to help reimburse 1,200 investors who were duped into buying the risky, unregistered securities used to finance the high-fee loan company.”4 How LaForte and McElhone executed their scheme is an intriguing story which provides helpful insight into ethical and U.S. securities law principles.
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Barlevy, Gadi, and Inês Xavier. "A Model of Charles Ponzi." Finance and Economics Discussion Series, no. 2025-020 (March 2025): 1. https://doi.org/10.17016/feds.2025.020.
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We develop a model of Ponzi schemes with asymmetric information to study Ponzi frauds. A long-lived agent offers to save on behalf of short-lived agents at a higher rate than they can earn themselves. The long-lived agent may genuinely have a superior savings technology, but may be an imposter trying to steal from short-lived agents. The model identifies when a Ponzi fraud can occur and what interventions can prevent it. A key feature of Ponzi frauds is that the long-lived agent builds trust over time and improves their reputation by keeping the scheme going.
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Cao, Yilin, Xiaohan Zhang, and Xinwen Zhang. "Analysis of the Ponzi Scheme in P2P Platform: Taking Ezubo as an Example." Highlights in Business, Economics and Management 24 (January 22, 2024): 791–96. http://dx.doi.org/10.54097/x1vy5s80.
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Driven by economic development, P2P online lending platforms have become a new area for the development of the financial industry. The rise of P2P platforms reflected the improvement in people's quality of life and the increasing demand for investment. This is good for economic development, but it also increases the difficulty of market supervision, and investment fraud from the perspective of Ponzi schemes is becoming more and more serious. This paper took Ezubo as an example to study the causes of the Ponzi scheme. According to research, it was found that the formation of a Ponzi scheme was closely related to corporate financial fraud, corporate and P2P risk problems, and social factors. The paper analyzed Ezubo's financial fraud, conducted risk analysis, and made suggestions on risk management and strengthening education. This paper helps to complement the shortcomings of current research on Ponzi schemes, and the advice on such behavior also has some practical implications to help people stay away from investment fraud.
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Ryzhkova, Marina, and Elmira Kashapova. "Stability of the Ponzi scheme phenomenon." Terra Economicus 20, no. 3 (2022): 22–38. http://dx.doi.org/10.18522/2073-6606-2022-20-3-22-38.
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Zhu, Anding, Peihua Fu, Qinghe Zhang, and Zhenyue Chen. "Ponzi scheme diffusion in complex networks." Physica A: Statistical Mechanics and its Applications 479 (August 2017): 128–36. http://dx.doi.org/10.1016/j.physa.2017.03.015.
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Zhang, Shuhui, Tian Lan, Lianhai Wang, Shujiang Xu, and Wei Shao. "Ethereum Ponzi Scheme Detection Based on PD-SECR." Security and Communication Networks 2022 (September 21, 2022): 1–15. http://dx.doi.org/10.1155/2022/2316310.
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Ethereum, a typical application of blockchain technology, has attracted extensive attention from all walks of life since its release. Owing to imperfections in existing supervision technology, illegal and criminal activities on blockchain platforms are becoming increasingly frequent. The most typical Ethereum fraud is the Ponzi scheme, which causes blockchain investors to lose millions of assets and severely impacts social development. Currently, Ponzi scheme detection primarily focuses on machine learning and data mining. However, existing detection methods still have two problems in data imbalance processing and feature extraction: (1) data enhancement using an oversampling algorithm produces noise and (2) feature redundancy existing in extracted feature data. The SMOTEENN algorithm is introduced to solve data imbalance. The PD-SECR method, the Convolutional Neural Network (CNN) feature extraction, and random forest (RF) classification models are used for detection, but the two models are independently trained. The results show that the detection method proposed in this study is more suitable for the Ethereum Ponzi scheme.
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He, Xingchen. "Research on the Operation Mechanism and Coping Strategies of Social Networks in the Ponzi Scheme." Highlights in Business, Economics and Management 35 (June 16, 2024): 244–51. http://dx.doi.org/10.54097/9g8wrj95.
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Social network marketing is one of the most mainstream scams today. This kind of fraud deceives many investors, generates negative effects on society, and decreases people’s trust and confidence in the investment. That is the main reason for and importance of tracing the origin of this kind of scam and talking about the Ponzi Scheme. The Ponzi Scheme is a fraud that happened a century ago, and the core method was to promise investors a high-interest rate in a short period of time and use the money of new payers’ money to afford the interests of previous investors. The mechanism sounds simple and not rigorous; however, this fraud received a successful consequence and became the origin of today’s form of fraud. This form of fraud with high profits is still very popular based on the nature of people’s greed. This passage aims to introduce the relationship between social networks and the conducting of the Ponzi scheme. Also, a discussion about how people reveal and prevent the traps of that kind of fraud is included. This study shows that the model of social networks in the Ponzi Scheme is a star network, and there is a hierarchy in this model. Also, the passage concludes with suggestions for the government, firms, and individuals.
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Binti Zulkhafri, Siti Zalzaliza, Hasani Mohd Ali, Mohd Zamre Mohd Zahir, and Muhamad Sayuti Hassan. "Enforcement Against Ponzi Scheme, The Fraudulent Method to Generate Easy Money in Malaysia." JURNAL UNDANG-UNDANG DAN MASYARAKAT, Isu Khas/Special Issue (December 13, 2023): 19–28. http://dx.doi.org/10.17576/juum-2023-si-02.
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Ponzi schemes are a type of investment fraud that offers investors great rates of return with no risk. Although various measures have been taken by law enforcement agencies as well as financial regulators to prevent this kind of problem, many people are still deceived by this kind of scheme. In Malaysia, there is no specific law mentioning Ponzi scheme. However, relevant laws such as the Penal Code, Financial Services Act 2013 and Direct Sales and Anti–Pyramid Scheme Act 1993 are some applicable laws that can be used to combat the Ponzi scheme. Hence, this article aims to examine the enforcement measures in Malaysia concerning illicit investment schemes and recommend various methods used by the United States and Australia for comparative purposes. Preventive measures and existing regulations used by the United States and Australia are also highlighted to compare the effectiveness of current enforcement done by the authorities in Malaysia. Findings show that despite Malaysia having a few laws in place to tackle this fraudulent scam, they are far from perfect. Therefore, more comprehensive regulations and strategies regarding this scheme are needed since it would assist the relevant authorities in preventing similar fraud. In conclusion, the Malaysian government needs to adopt proper regulation, education, and enforcement to reduce or prevent the number of Ponzi scheme cases in Malaysia. If left unaddressed, the situation will worsen, negatively affecting investors, creditors, and the public.
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Chen, Weimin, Xinran Li, Yuting Sui, et al. "SADPonzi: Detecting and Characterizing Ponzi Schemes in Ethereum Smart Contracts." ACM SIGMETRICS Performance Evaluation Review 49, no. 1 (2022): 35–36. http://dx.doi.org/10.1145/3543516.3460105.
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Ponzi schemes are financial scams that lure users under the promise of high profits. With the prosperity of Bitcoin and blockchain technologies, there has been growing anecdotal evidence that this classic fraud has emerged in the blockchain ecosystem. Existing studies have proposed machine-learning based approaches for detecting Ponzi schemes. However, these state-of-the-art approaches face several major limitations, including lacking interpretability, high false positive rates and the weak robustness to evasion techniques, These limitations mean that existing real-world methods for detecting Ponzi schemes are ineffective. In this paper, we propose SADPonzi, a semantic-aware detection approach for identifying Ponzi schemes in Ethereum smart contracts. Specifically, we propose a heuristic-guided symbolic execution technique to identify investor-related transfer behaviors and the distribution strategies adopted. Experimental result on a well-labelled benchmark suggests that SADPonzi can achieve 100% precision and recall, outperforming all existing machine-learning based techniques. We further apply SADPonzi to all 3.4 million smart contracts deployed by EOAs in Ethereum and identify 835 Ponzi scheme contracts, with over 17 million US Dollars invested by victims. Our observations confirm the urgency of identifying and mitigating Ponzi schemes in the blockchain ecosystem.
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Sawaya, Chadia, Nada Jabbour Al Maalouf, Jean Elia, Elena Toros, and Najib Bou Zakhem. "Lebanese Banking System: Ponzi or Not?" Journal of Law and Sustainable Development 11, no. 6 (2023): e1204. http://dx.doi.org/10.55908/sdgs.v11i6.1204.
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Objective: Lebanon is currently in its third year of an economic crisis that started in 2019 when the banking system collapsed under the weight of massive public debt, the result of decades of corruption and incompetence as well as an unsustainable financing mechanism and the ineptitude of those in power. Many people are wondering why Lebanon’s perversive financial system exists and many financial critics compared the banking system to a Ponzi scheme which has never been supported or refuted before by scholarly research that has been published. Taking into consideration the gap in the body of prior research and writing, the following study aims to address its focal question: Can the Lebanese banking sector be compared to a Ponzi scheme?
 
 Method: To test the hypothesis, a survey was delivered to the bank’s clients receiving 432 responses.
 
 Results: Based on the responses, the hypothesis was verified at least from the point of view of Lebanese citizens who believe they were tricked and deceived by a Ponzi scheme.
 
 Conclusion: Due to the significant harm caused by Ponzi schemes, international authorities are considering conducting extensive interrogation into this destructive enigma. Hence, for future work, it is recommended to conduct a qualitative study to gather data from the perspective of professionals in the Lebanese banking sector, financial market experts, and economic analysts.
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Cerasoli, Sara, and Amilcare Porporato. "California’s groundwater overdraft: An environmental Ponzi scheme?" Journal of Hydrology 617 (February 2023): 129081. http://dx.doi.org/10.1016/j.jhydrol.2023.129081.
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Saadat, Syed Yusuf. "Government borrowing as a Ponzi scheme: the case of Bangladesh." Economics and Business Letters 10, no. 1 (2021): 81–86. http://dx.doi.org/10.17811/ebl.10.1.2021.81-86.
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This study investigates whether government borrowing can be likened to a Ponzi scheme which will allow the government to roll-over its debt perpetually. The results show that, on the basis of the condition of maintaining real economic growth rate above and beyond the real interest rate on government debt, it will not be possible to sustain a perpetual Ponzi scheme of all four types of National Savings Certificates in Bangladesh. The government’s debt may be rolled over perpetually for two types of National Savings Certificates, following the condition outlined in Ball, et al. (1998), or for three types of National Savings Certificates following the condition outlined in Mehrotra (2017).
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Wilson, Linus. "Madoff’s dirty money." Journal of Money Laundering Control 22, no. 2 (2019): 289–99. http://dx.doi.org/10.1108/jmlc-03-2018-0022.
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Purpose The purpose of this study is to estimate the profits to JPMorgan Chase from the Madoff Ponzi scheme’s checking account deposits at the bank based on the data in Harbeck (2011). The Madoff Ponzi scheme was sitting on a cash hoard in excess of a US$1bn by the 1990s. Most of that money came into and stayed in the 703 account at JPMorgan Chase or it was transferred to one of the 11 other bank accounts. The author uses previously unanalyzed data from the Security Investor Protection Corporation (SIPC) to estimate JPMorgan Chase’s earnings from the accounts. Design/methodology/approach The author estimates the checking account balances of the Madoff Ponzi scheme with JPMorgan Chase and its ancestor corporation, Chemical Bank. He estimates the earnings from those large checking accounts and reinvests them in the stock price from 1986 to 2011. He uses data on the Madoff checking accounts released by Harbeck (2011) to estimate that JPMorgan Chase earned over US$900m from those large and suspicious checking deposits. Findings The US$907m in estimated profits from the Madoff Ponzi scheme bank accounts are much smaller than the US$2.6bn fine that JPMorgan Chase paid in 2014 to limit its liability for its dealings with Bernard L. Madoff. Any failure of anti-money laundering compliance in this case was very costly for the bank. Originality/value This is only study to analyze the Harbeck (2011) data to estimate JPMorgan Chase’s profits from the Madoff Ponzi scheme’s checking deposits. As JPMorgan Chase paid a US$2.6bn fine in this matter, it is relevant to look at how big the fine was relative to the profits the corporation may have earned from doing business with Bernie Madoff.
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Chen, Weimin, Xinran Li, Yuting Sui, et al. "SADPonzi: Detecting and Characterizing Ponzi Schemes in Ethereum Smart Contracts." Proceedings of the ACM on Measurement and Analysis of Computing Systems 5, no. 2 (2021): 1–30. http://dx.doi.org/10.1145/3460093.
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Ponzi schemes are financial scams that lure users under the promise of high profits. With the prosperity of Bitcoin and blockchain technologies, there has been growing anecdotal evidence that this classic fraud has emerged in the blockchain ecosystem. Existing studies have proposed machine-learning based approaches for detecting Ponzi schemes, i.e., either based on the operation codes (opcodes) of the smart contract binaries or the transaction patterns of addresses. However, state-of-the-art approaches face several major limitations, including lacking interpretability and high false positive rates. Moreover, machine-learning based methods are susceptible to evasion techniques, and transaction-based techniques do not work on smart contracts that have a small number of transactions. These limitations render existing methods for detecting Ponzi schemes ineffective. In this paper, we propose SADPonzi, a semantic-aware detection approach for identifying Ponzi schemes in Ethereum smart contracts. Specifically, by strictly following the definition of Ponzi schemes, we propose a heuristic-guided symbolic execution technique to first generate the semantic information for each feasible path in smart contracts and then identify investor-related transfer behaviors and the distribution strategies adopted. Experimental result on a well-labelled benchmark suggests that SADPonzi can achieve 100% precision and recall, outperforming all existing machine-learning based techniques. We further apply SADPonzi to all 3.4 million smart contracts deployed by EOAs in Ethereum and identify 835 Ponzi scheme contracts, with over 17 million US Dollars invested by victims. Our observations confirm the urgency of identifying and mitigating Ponzi schemes in the blockchain ecosystem.
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Pearce, Robert, and Jennifer Shearman. "Sinclair Investments (UK) Ltd v Versailles Trade Finance Ltd (in Administration) Court of Appeal [2011] EWCA Civ 347." Denning Law Journal 24, no. 1 (2012): 191–205. http://dx.doi.org/10.5750/dlj.v24i1.399.
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THE PURSUIT OF PROPRIETARY REMEDIES FOR BREACH OF FIDUCIARY DUTYThere is an old adage that if an opportunity looks too good to be true, then it almost certainly is. Despite this, the law reports are filled with examples of people seeking redress for the fallout from “get rich quick” schemes that have gone wrong. One type of scam, exemplified by the fraudulent investment scheme run by Bernard Madoff from the United States and which collapsed in 2008, is known as a “Ponzi1 scheme”.2 The wrongdoer in such a scheme invites “investments” promising a high rate of return. The funds subscribed are not in fact invested (or if they are, they are invested in vehicles which produce a lower rate of return than that promised). Instead, the money from new subscribers is used to pay the rewards to earlier subscribers. In due course the scheme is bound to collapse, because there will be a point at which the new funds coming in are insufficient to make the payments to existing subscribers, and the bubble of new investment can continue only for as long as there is confidence on the part of subscribers, encouraging fresh deposits. When the scheme begins to unravel, it falls apart very quickly, since the assets held by the wrongdoer are inevitably inadequate to reimburse all of the subscribers in full. In the ensuing insolvent liquidation, subscribers stand to recover only a small fraction of their subscription as unsecured creditors unless they can demonstrate that they have a proprietary interest in some of the remaining assets. Sinclair Investments (UK) Ltd v Versailles Trade Finance Ltd is a case involving what the judge at first instance called a “classic Ponzi scheme”.
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Albrecht, Chad, Victor Morales, Jack Kristian Baldwin, and Steven Deron Scott. "Ezubao: a Chinese Ponzi scheme with a twist." Journal of Financial Crime 24, no. 2 (2017): 256–59. http://dx.doi.org/10.1108/jfc-04-2016-0026.
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Purpose The paper aims to report on the single largest peer-to-peer lending scandal in the history of China. The authors provide details on how the case was perpetrated. The authors also provide details as to how investors were fraudulently manipulated in the scam. Finally, the authors provide updates on recent regulation in China in the peer-to-peer lending industry. Design/methodology/approach This is a theoretical paper that provides a better understanding of both Ponzi schemes and fraudulent practices in the peer-to-peer industry. Findings While the Ponzi scheme has been around for many years, fraud perpetrators continue to find new ways to use the scheme to manipulate and take advantage of investors. The case of Ezubao provides important insight for both regulators, academics, investors and financial advisors. Originality/value Ezubao, a start-up in an industry with little to no regulation, provides a textbook example of common fraud symptoms (or red flags). The deception was enacted through Ezubao’s bold advertising scheme and falsified appearance of success and government support. This was enough to brilliantly deceive over 900,000 susceptible investors. While Ezubao was one of the first peer-to-peer lending scandals to be uncovered, it certainly will not be the last.
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Hossain, Fahad, Mehedi Hasan Shuvo, and Jia Uddin. "A hybrid machine learning approach for improved ponzi scheme detection using advanced feature engineering." International Journal of Informatics and Communication Technology (IJ-ICT) 14, no. 1 (2025): 50. https://doi.org/10.11591/ijict.v14i1.pp50-58.
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Ponzi schemes deceive investors with promises of high returns, relying on funds from new investors to pay earlier ones, creating a misleading appearance of profitability. These schemes are inherently unsustainable, collapsing when new investments wane, leading to significant financial losses. Many researchers have focused on detecting such schemes, but challenges remain due to their evolving nature. This study proposes a novel hybrid machine-learning approach to enhance Ponzi scheme detection. Initially, we train an XGBoost classifier and extract its features. Meanwhile, we tokenize opcode sequences, train a gated recurrent unit (GRU) model on these sequences, and extract features from the GRU. By concatenating the features from the XGBoost classifier and the GRU, we train a final XGBoost model on this combined feature set. Our methodology, leveraging advanced feature engineering and hybrid modeling, achieves a detection accuracy of 96.57%. This approach demonstrates the efficacy of combining XGBoost and GRU models, along with sophisticated feature engineering, in identifying fraudulent activities in Ethereum smart contracts. The results highlight the potential of this hybrid model to offer more robust and accurate Ponzi scheme detection, addressing the limitations of previous methods.
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Fahad, Hossain Mehedi Hasan Shuvo Jia Uddin. "A hybrid machine learning approach for improved ponzi scheme detection using advanced feature engineering." International Journal of Informatics and Communication Technology 14, no. 1 (2025): 50–58. https://doi.org/10.11591/ijict.v14i1.pp50-58.
Full textAbstract:
Ponzi schemes deceive investors with promises of high returns, relying on funds from new investors to pay earlier ones, creating a misleading appearance of profitability. These schemes are inherently unsustainable, collapsing when new investments wane, leading to significant financial losses. Many researchers have focused on detecting such schemes, but challenges remain due to their evolving nature. This study proposes a novel hybrid machine-learning approach to enhance Ponzi scheme detection. Initially, we train an XGBoost classifier and extract its features. Meanwhile, we tokenize opcode sequences, train a gated recurrent unit (GRU) model on these sequences, and extract features from the GRU. By concatenating the features from the XGBoost classifier and the GRU, we train a final XGBoost model on this combined feature set. Our methodology, leveraging advanced feature engineering and hybrid modeling, achieves a detection accuracy of 96.57%. This approach demonstrates the efficacy of combining XGBoost and GRU models, along with sophisticated feature engineering, in identifying fraudulent activities in Ethereum smart contracts. The results highlight the potential of this hybrid model to offer more robust and accurate Ponzi scheme detection, addressing the limitations of previous methods.
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Ragothaman, Srinivasan C. "The Madoff Debacle: What are the Lessons?" Issues in Accounting Education 29, no. 1 (2013): 271–85. http://dx.doi.org/10.2308/iace-50597.
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ABSTRACT This paper describes the implementation of a “Ponzi scheme case study” in auditing classes at the undergraduate and the Master's level. This instructional case is based on the much-publicized Madoff Ponzi scheme. The case exposes students to several auditing-related concepts, including: (1) fraud auditing; (2) ethical reasoning and utilitarian principles; (3) affinity fraud and Ponzi schemes; (4) internal control evaluation; (5) governance issues; (6) the Securities and Exchange Commission (SEC) investigations; (7) investment strategies and terminologies; and (8) regulation. The case provides students with an opportunity to assume the role of an external auditor and participate in some active learning exercises. About 170 accounting majors participated in this case project during a three-year period at a Midwestern university. Students who worked in groups were genuinely engaged in the learning process, and they came up with several red flags associated with the Madoff fraud and suggested many new internal controls. This case provides a hands-on learning experience to students that could be relevant for them in their future career in public accounting. Student opinion surveys conducted about the learning outcomes of this project indicate strong student engagement, active learning, and satisfaction.
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Anggriawan, Rizaldy. "Combating Ponzi Schemes: an in-Depth Look at Law Enforcement Effectiveness in Indonesian Context." Pázmány Law Review 11, no. 1 (2024): 117–46. https://doi.org/10.55019/plr.2024.1.117-146.
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Ponzi schemes, infamous for their ability to exploit unsuspecting investors, continue to pose a significant challenge to financial authorities globally. Indonesia, with a burgeoning economy and a growing financial sector, is not immune to the threat of fraudulent activities. This study delves into the effectiveness of existing law enforcement measures in Indonesia to combat Ponzi schemes, shedding light on areas that need of needing improvement. The research employs a mixed-methods research design, the study combines quantitative and qualitative data to comprehensively examine the issue. The findings reveal that while Indonesia has specific legal provisions to prosecute Ponzi scheme operators based on the sectoral laws and regulations, law enforcement still faces challenges related to evidentiary factors, witness factors, legal instrument, and limited resources. The reluctance of victims to report these schemes hinder successful prosecution. Law enforcement agencies often prioritize other criminal offenses due to resource constraints. To address these challenges, the study emphasizes the need for enhanced collaboration among law enforcement agencies and banking institutions, and the allocation of resources for these cases should be reconsidered. These reforms are essential to improve the state of law enforcement and protect potential victims of Ponzi schemes in Indonesia.
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Mohd Sulaiman, Aiman Nariman, Azza Isma Moideen, and Sharon David Moreira. "Of Ponzi schemes and investment scams." Journal of Financial Crime 23, no. 1 (2015): 231–43. http://dx.doi.org/10.1108/jfc-05-2014-0021.
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Purpose – This paper aims to chart the enforcement actions taken by the Malaysian regulatory authorities in relation to illegal investment schemes in Malaysia, and clarifies the various strategies adopted by the Malaysian regulatory authorities to ensure protection of investors in the capital market. The enforcement actions relate to the Swisscash scheme as well as commodities futures involving crude palm oil and a more recent case involving gold futures. These schemes share similar characteristics with Ponzi schemes that were thrust into the international limelight in the notorious Madoff Ponzi scheme and its allegation of regulatory failure. Design/methodology/approach – The paper clarifies, by way of case study, public enforcement of illegal investment schemes promoted through the Internet and schemes involving cross-border investments. Findings – The enforcement powers of the regulatory authorities in Malaysia are being utilized to ensure compliance with the law. The enforcement actions by the regulatory authorities in the afore-stated cases are significant in view of the successful custodial sentence of imprisonment, the regulators’ public enforcement action intended to compensate investors and the most recent case which is unfolding, due to the large number of alleged perpetrators and significant wealth transfer involved. Originality/value – Given the allegation of regulatory failure in other jurisdictions, this paper enables a view to be formulated of the timeliness and appropriateness of the enforcement actions.
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Onanuga, Paul, and Rotimi Taiwo. "Discursive Features of Nigerian Online Ponzi Schemes’ Narratives." ELOPE: English Language Overseas Perspectives and Enquiries 17, no. 2 (2020): 61–82. http://dx.doi.org/10.4312/elope.17.2.61-82.
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Although Ponzi schemes have existed since the 1800s, contemporary financial challenges have rejuvenated them while the Internet has enhanced their proliferation, particularly in developing countries. The present study analyses select discursive features for digital deception in Nigerian online Ponzi schemes. We identify the use of stance and linguistic engagement, formulaic expressions and politeness strategies, narrativity, naming, and lexical range as techniques used by scheme creators. These linguistic and discursive choices are wielded as tools to attract customers and, ultimately, to deceive. The overt propagation of financial gains has underlying ideological implications, as it projects a sense of communality and encourages financial leverage which are in turn exploited to con unsuspecting – often greedy – subscribers. We conclude that language use in Ponzi schemes is intentionally crafted to appeal to diverse individual sentiments, particularly within developing economies where poverty is widespread and people seek to make money through any means in order to survive.
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Paulo, Stanley, and Chris Gale. "The Miller‐Modigliani 1961 Ponzi scheme, alias “dividend irrelevance”." International Journal of Law and Management 54, no. 3 (2012): 234–41. http://dx.doi.org/10.1108/17542431211228638.
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Wolinsky, Howard, and Rita Rubin. "‘Kicking the can’: science, Congress and a Ponzi scheme." EMBO reports 15, no. 1 (2014): 21–24. http://dx.doi.org/10.1002/embr.201338236.
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SEMMLER, WILLI, and RAPHAELE CHAPPE. "PONZI FINANCE AND THE HEDGE FUND INDUSTRY." Advances in Complex Systems 15, supp02 (2012): 1250037. http://dx.doi.org/10.1142/s0219525912500373.
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This paper presents a stochastic dynamic model that can be used to describe situations in asset management where hedge funds may inadvertently find themselves running a Ponzi financing scheme. Greater transparency is necessary to reduce such opportunities, such as audited financials, and disclosure of valuation methodologies. In that respect, new regulatory frameworks enacted by the Obama administration and the European Union are welcome developments.
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Venter, J. MP, W. R. Uys, and M. C. Van Dyk. "MP Finance Group CC (In Liquidation) v C: SARS: Adding to the financial hardship of victims of illegal transactions." Southern African Business Review 19 (February 12, 2019): 121–38. http://dx.doi.org/10.25159/1998-8125/5793.
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This article analyses the interpretation of the phrase “received by, accrued to or in favour of” in the gross income definition of the Income Tax Act, as applied to illegal receipts. During the last few decades, South Africans have been victims of a number of Ponzi-type schemes. In MP Finance,1 the Supreme Court of Appeal considered whether illegal receipts received by the Krion Ponzi-type scheme should be included in gross income. After considering the relationship between the taxpayer and the fiscus, the court concluded that, as from a specified juncture, the taxpayer received the amount for its own benefit and it should therefore be included in gross income. The court recognised that the contractual relationship between the investor and the scheme (taxpayer) could in fact be void, resulting in the investor having a right to recover the investment from the taxpayer. The court did not consider whether the levying of income tax on amounts received by the operator of the scheme could infringe on the investor’s right to property espoused under the Constitution of the Republic of South Africa, 1996. It is submitted that the levying of tax does infringe on this right as it reduces the amount that could be recovered from the scheme because the original investment in the scheme is void.
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Dudafa, Undutimi Johnny. "Failed Ponzi Schemes and Mental Health Challenges in Yenagoa, Bayelsa State: The Case of Baraza." International Journal of Research 12, no. 2 (2025): 445–60. https://doi.org/10.5281/zenodo.14884276.
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<em>This study is based on failed Ponzi scheme and mental health challenges, a case study of baraza in Yenagoa, Bayelsa State, Nigeria. This study employed the use of the social strain theory and cognitive theory to unravel the reasons why some individuals venture into Ponzi scheme, this study made used of the snowball method in collecting data using the qualitative instruments of data collection (IDI) to collect data from 20 or 25 persons base on the fact that the study was qualitative, and the data where analyzed using the thematic method of data analysis, this study investigates the mental health challenges investors of Baraza face due to the failure of the scheme and findings shows that among those whom were victims of baraza, their mental state was associated with fear, psychological trauma, anxiety, suicidal thoughts, money security, distrust in clergymen, financial debt and excessive thinking. The second objective was to ascertain the socioeconomic impact of the failed scheme on baraza investors and it reveals that victims of baraza could no longer fulfill their laid down objectives, family basic necessities was problematic because no planned monthly income was made possible, those whom intended starting up businesses with the promising returns could not venture into their business. And also, this study intended knowing the coping strategies investors of baraza employed to deal with the mental health challenges they experienced, it unraveled that majority of the participants relied on the help of God to get them through the challenging moments of their lives. Some had to get involved with betting to help them forget the pains and mental challenges the failure of the scheme had on them. However, it is important to state that the government, it's agencies and investors have a role to play in other to reduce the rate of failed Ponzi schemes. The government and its agencies should ensure that investment platforms that operates within the state and country have registered with its financial regulations institutions and have met with its terms and conditions, and investors should ensure that before investing their money into any scheme it has been registered with the government and its financial regulatory institutions</em>.
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Prayuda, Jun Rifky, Zakiyuddin Zakiyuddin, and Amrie Firmansyah. "Skema Ponzi: Indikasi Kecurangan Pada Valuasi Startup Menggunakan Gross Merchandise Value." Jurnal Ilmiah Manajemen Kesatuan 10, no. 1 (2022): 35–50. http://dx.doi.org/10.37641/jimkes.v10i1.1184.
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Startup-related issues have been growing in recent years due to their massive publication in the media. The growth numbers of startup companies globally, especially in Indonesia, have shown an astonishing figure. Valuation is one of many issues that revolve around startups. This study examines valuation fraud that leads to Ponzi Scheme in startup companies by using Gross Merchandise Value (GMV) as the valuation indicator. Scoping review was employed to identify and map literature that links to this study’s topic comprehensively through many sources. Venture capitalists and management teams play a key role in valuing startups. Financial academics suggest general valuation models, such as Net Present Value (NPV) and Discounted Cash Flows (DCF), are not used to value startups. They tend to value their company subjectively, which doesn’t represent startup true economic values. They use their advantages on information asymmetry excessively, leading to overvaluing the startup’s values. This study concludes that using subjective factors and limiting a startup’s economic and performance information disclosure by only disclosing Gross Merchandise Value will lead to startup valuation fraud in the form of the Ponzi Scheme.
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Bykadorova, Elena Vl, and Alexander V. Afanasiev. "Financial pyramid as one of the ways of money legalization (laundering)." Law Нerald of Dagestan State University 45, no. 1 (2023): 132–38. http://dx.doi.org/10.21779/2224-0241-2023-45-1-132-138.
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В данной статье рассматриваются преступные схемы, связанные с легализацией денежных средств, добытых преступным путем в ходе организации финансовой пирамиды. Особое внимание уделено схеме Понци, изобретённой итальянским эмигрантом Чарльзом Понци в 1919 году. Преступления данной направленности отличаются изощренностью и высоким интеллектуальным уровнем. Приведены меры, принятые по предупреждению легализации (отмывании) денежных средств, имущества в Международном сообществе и в Российской Федерации. This article considers criminal schemes related to the legalization of funds obtained by criminal means during the organization of the financial pyramid. Particular attention is paid to the Ponzi scheme invented by the Italian emigrant Charles Ponzi in 1919. Crimes of this orientation are distinguished by sophistication and a high intellectual level. Measures taken to prevent the legalization (laundering) of funds, property in the International Community and in the Russian Federation are given.