Primerica Group Vs Amway

In 2011 twenty-five million Americans were taken advantage of. (Small, 2013) All twenty-five million were due to fraud, mainly seventeen types of fraud. (Small, 2013) These types of fraud were mainly, weight loss products, prize promotions, and work at home programs. (Small, 2013) However, in 1964 when a young Frank Abagnale Jr. set of on one of the longest crime sprees in history, the world of white collar crime was a lot different.

We can learn a lot by analyzing, evaluating, discussing, and exploring the methods of high level companies and their strategy to reach success. Primerica Financial Service is a company that provides life insurance and investments that help and serve the middle-income costumer with the best life insurance. They called it term life insurance. Primerica has a different approach compared to other companies; they want to offer the best life insurance to the costumer. Primerica’s main goal is to help other people. It is important to evaluate our own companies without bias and determinate ourselves to reach excellence.

For example, in 2008, Bernard Madoff pulled off what is known as the largest Ponzi scheme in history. Madoff took his investors for $65 billion over the course of twenty years. Billionaires, celebrities, banks, and charities lost money in the scheme. It is a shame that we have people that prey on the elderly and also use their influence to swindle funds from the people. You spend your whole adult

Ponzi schemes are when someone offers to make investment for you with a phenomenal return, but never really does the investing and takes your money. Pyramid schemes are fake opportunities to make money selling products or investing. Scammers get you to pay a fee up front but never provide information. Ponzi schemes and pyramid schemes are similar because they are highly damaging to consumers and the financial industry. Basically they steal money and deplete people’s lifetime savings.

A Ponzi scheme is where the operator entices potential investors into fraudulent investments by offering them high returns on the money they invest. The main operator of this scheme is the only one that makes a significant amount of money. The operator will tell the investor he will make outstanding amounts of money and will reap some benefits. The way the investor makes money is due to the fact that the operator is deceiving new investors into investing new money into the scheme.

This is very appealing to the investors. The person in charge of the scheme will describe to potential investors how he/she is able to achieve such a high rate. Once the head honcho has convinced a few investors to make an investment, the scheme has begun. After a few months, the initial investors are paid their investment plus the rate of return. These investors will then tell their friends and family about the money they made and their friends will want to join in. A good scammer will make the investors feel as if this is a special business enterprise and convince them that this is too good to not participate. They will not learn about the details of the investment, but more so the unbelievable return they will earn. As more people invest money in the system, the new investors money is used to pay off the old investors. Little do the investors know that their money isn’t being invested, but being used to pay old investors and to fund the lavish lifestyle of the scammer. One of the goals of the scammer is to keep the original people happy, while promising great returns (that will most likely never be met) to the new investors. The investors are promised a consistent return, regardless of better or worse market conditions. Their investments are not registered with the SEC. They are also usually clueless on exactly how their money is being invested

A Ponzi scheme is an illegal business practice in which new investor’s money is used to make payments to earlier investors. In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors and to use for personal expenses, instead of engaging in any legitimate investment activity. The returns are repaid out of new investors’ principal, but not from profits. This can continue as long as new investors line up with cash, and old investors don’t try to withdraw too much of their money at once.

* A pyramid scheme is an unsustainable business model that involves promising participants payment or services, primarily for enrolling other people into the scheme, rather than supplying any real investment or sale of products or services to the public.[1][2]

A Ponzi scheme is one of the common frauds in life. It is a special type of illegal pyramid operation (Wells, 2010). The scheme organizers promise high rates of return with little risk to investors. In many Ponzi schemes, the

A pyramid scheme is a non-sustainable business model that involves promising participants payment, services or ideals, primarily for enrolling other people into the scheme or training them to take part, rather than

That is what this paper will explain. This paper provides a case study on Ponzi schemes and

The word Amway is a short word for American Way. Amway an American Company that uses Network Marketing to sell variety of products like Beauty products, home care products, Health care products, Nutrilite dietary supplements, water purifiers etc. Amway was founded in 1959 by Richard DeVos and Jay Van Andel. Amway was ranked 26 among the largest private companies in the United States by Forbes in 2012.

Above picture describes how pyramid scheme works. Their business focus is more on recruiting new members and involves promises of large profits with minimal work where the vast majority of participants will lose money. The income will stop when recruitment is stop.

A Ponzi scheme is a type of fraud called investment fraud. It, “involves the payment of purported returns to existing investors from funds contributed by new investors” (6). Investors are usually promised a high return rate. The fraudsters attract new investors and pay back their old investors with the new investor’s money. Ponzi schemes are named after Charles Ponzi who created scheme by getting residents to invest in a postage stamp scheme. Bernie Madoff is a well known and not well liked Ponzi scheme fraudster. He is currently in federal prison. These types of fraud schemes hurt hundreds or millions of individuals and families.

In 20th century, the financial investment is an unfamiliar industry to every family. People usually save their money in the bank, some of them even keep their money at home. However there are some special outstanding people has already know the importance of the financial investment and right now they become one of the richest man in the world. Such as Warren Edward Buffett. Because of the influence of these people. More and more people start to know and learn how to get profit from financial investment. Nevertheless not everyone has a father who is financial manager and have a chance to study in the university. Therefore most of people prefer find a financial adviser who can help them and using their money to invest on different financial products. So that the financial adviser became a very popular job. They help investor to find the suitable financial products and get salary from them. But there were some unethical financial investment companies use ignorant of the investor to earn more profit. One of the simplest yet most effective investment scams is the ponzi scheme which happend. The promoter promises investors a very high return on investment and says it is secure, but there is no real 'investment '. These investment scams make financial investment industry to lost the trust from their investors. (https://www.moneysmart.gov.au/scams/investment-scams) For this reason the financial investment industry and the world countries governments right now are not only