Pearlman financed bands through which type of illegal scheme?
Pyramid
Ponzi
Chain letters
Investment fraud
Answer
Ponzi scheme, the fraudulent investment operation characterized by the payment of returns to investors from their own invested funds or the money paid by subsequent investors, rather than from any actual profit earned. In this fraudulent scheme, the perpetrator uses the funds from new investors to provide returns to earlier investors, presenting the illusion of a successful investment opportunity.
The Rise and Fall of Lou Pearlman: Test Your Knowledge on the Mastermind Behind Iconic Pop groups!
Related Quizzes
Subscribe Now!
Learn something
new everyday
Playing quizzes is free! We send 1 quiz every week to your inbox