What is the name given to the fraudulent operation that involves paying abnormally high returns to investors out of the money paid in by subsequent investors rather than from revenues generated by any business?
High-yield investment program High-yield investment program A high-yield investment program (HYIP) is a type of Ponzi scheme, an investment scam that promises unsustainably high return on investment by paying previous investors with the money invested by new investors. Operators generally set up a website offering an "investment program" which promises very high returns, such as 1% per day (3678% APY when returns are compounded every day), disclosing little or no detail about the underlying management, location, or other aspects of how money is to be invested. The U.S. Securities and Exchange Commission (SEC) has said that "these fraudulent schemes involve the purported issuance,
Richard Fagan (polo) Fagan's fund has been seized but at the time of writing in 2015 he has not been accused of any wrongdoing by regulators. His fund is now in liquidation and he robustly denies involvement in a fraudulent investment operation where the operator pays returns to its investors from new capital paid to the operators by new investors, rather than from profits earned through legitimate sources and has not been charged with any wrongdoing. But a number of high-value managed funds linked to Fagan's network have been seized by financial regulators and put into administration to protect investor funds in recent