Example of a Pyramid Scheme
One notorious example of a pyramid scheme is the case of “Zeek Rewards,” which operated from 2010 to 2012. Promising high returns for participants who invested money and recruited others, Zeek Rewards claimed to be involved in penny auctions. However, the scheme collapsed as the majority of returns were funded by new investments rather than legitimate profits. The founder, Paul Burks, was later charged by the U.S. Securities and Exchange Commission for running a $600 million pyramid and Ponzi scheme.
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