pyramid scheme

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Suit: LuLaRoe Has $1B in Sales, but Sellers in 'Financial Ruin'

It's accused of 'pyramid scheme' in 2 class-action suits

(Newser) - When consultants told LuLaRoe they could no longer afford to spend tens of thousands of dollars building an inventory of its merchandise, the clothing company offered several solutions, including that women max out their credit cards, take out loans, or sell breast milk to come up with the funds. Those...

Authorities Find $20M Hidden Under Mattress
Authorities Find $20M
Hidden Under Mattress

Authorities Find $20M Hidden Under Mattress

While investigating an international pyramid scheme

(Newser) - You'd think that much cold, hard cash would make for an uncomfortable night's sleep. The AP reports a 28-year-old Brazilian man was arrested this week in Massachusetts after authorities found about $20 million hidden in a box spring. The arrest of Cleber Rene Rizerio Rocha is connected to...

FBI Probes Herbalife Pyramid Scheme Allegations

Hedge fund manager made accusation in 2012

(Newser) - In December 2012, a hedge fund manager accused nutrition company Herbalife of being a pyramid scheme; now, the FBI is investigating. The criminal probe comes on top of civil investigations from multiple agencies, including the Federal Trade Commision, the Financial Times reports—though no charges have been filed. Following news...

New $130M Global Ponzi Scheme Busted

(Newser) - London investigators have uncovered a $130 million Ponzi scheme that duped hundreds of celebrities and businessmen around the world, reports the Telegraph. The scammers were so slick that many of their victims refuse to believe they were sucked in by the ersatz high-yield fund, and are still expecting payment, according...

Feds to Charge Hsu on Pyramid Scheme, Dem Fundraising

Some of missing money said to be donated

(Newser) - Rogue Democratic fundraiser Norman Hsu’s troubles are deepening today, as federal officials are expected to charge the twice-on-the-lam financier with running a $60 million pyramid scheme and breaking campaign-finance laws. Hsu faces accusations that he falsely told investors their money was going into a clothing operation; some of was...

Ant Farm Con Man Gets Death
Ant Farm
Con Man
Gets Death

Ant Farm Con Man Gets Death

Fraudulent sales of "medicinal ants" earned him $400 million

(Newser) - A pyramid scheme built on an ant farm earned a Chinese entrepreneur over $400 million—and a death sentence. The sentence meted out to Wang Zhendong by a Chinese court last month is part of a nationwide crackdown on fraud. Wang swindled thousands of people by misrepresenting his wares as...

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