What type of scheme has one biographer described Kreuger's empire as?
Ponzi scheme
Pyramid scheme
Trust scheme
Fraud scheme
Answer
Ponzi scheme: A fraudulent investment operation that pays returns to existing investors from funds contributed by new investors, rather than from legitimate profits. Kreuger's empire has been described as a Ponzi scheme because it relied on a constant influx of new investments to pay off old investors, with little or no underlying assets or revenue to support the returns.
Mastermind or Mogul: The Intriguing Tale of Ivar Kreuger
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