Weekend January 28, 2017
As I say we never run out of fraud examples for the spring ethics class. An alert TAMUSA student spotted the latest twist on the ever famous
Ponzi Scheme. In a Ponzi Scheme, early investors are paid high returns from money deposited by later investors. The schemers then attempt to convince every one to
simply let the profits build by compounding the returns. But of course there are no returns.
This version promised to buy tickets in bulk to popular shows like Hamilton and then re sell themindividually at higher prices.
The promise that they had made a deal to buy tickets in bulk from the show producers was of course false. And, why on earth would the producer of a popular show do that when
tickets are going for record prices anyway? But such schemes require gullible investors.
Notice they amassed $50 M in about a year, but are now facing Federal Prosecution.
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