A Ponzi Scheme- Named after Charles Ponzi who used a technique similar to that used by Bernie Mardoff. It is often mistakenly considered exchangeable with pyramid schemes. A Ponzi scheme is different since the schemer acts as a hub for all the victims. On the other hand, a pyramid scheme is designed in a way that additional participants are mandated with recruiting new victims. A ponzi scheme also survives longer than a pyramid scheme.
