Money pyramid scam

Usually (not always) these programs pay part of your invested money back, giving you the image that they actually give huge profits, making you recommend the program to other people who do the same thing, investing hundreds and thousands on these claimed investment strategies. Then after paying no money at all or few thousands back to its investors, the whole program vanishes with tens or hundreds of thousands of invested money and these people start the same scam over and over again.

Usually they put on a website on a server that doesn't reveal their true identity, with no IP addresses tracing back to them, they put on laptop in a rented hotel room with a fake name in the hotels register, for example John Smith... which is quite ordinary name. After some weeks or months they transfer the invested money on a secured location, erase the laptops memory and throw it somewhere on trash pile... after all, they have hundreds of dollars of invested money in their pockets after the earlier scams.

Charles Ponzie was one of the most famous people doing this, he earned millions of dollars by selling food tickets which he claimed to give huge profits. In the end he had to hire people just to calculate and archive all the money that was pouring to him in envelopes, from people that believed this story as they heard people getting big profits from his scheme and thought that it was true. Some years later he was convicted of this scam as people stopped investing on the programs and the old investors lost their true source of income... this is called a pyramid game, where invested money is poured together and shared to the people that have invested on the same money game earlier, pyramid schemes usually stop paying when they don't find enough new investors to take advantage on.

I recommend searching more information about Charles Ponzie on internet as I find him quite interesting character... and it helps you to understand the whole scam scheme better.