Robbing Peter to pay Paul. We all at some point in our lives have done it. We stretch ourselves to the point where we juggle our finances like circus performers. It in itself is not a crime, its a part of life. There are a select few who take it to the extreme with the intent to deceive, lie, cheat, steal, rob, scam and prey, you get the point. Online deception will be a portal that exposes and displays the known and unknow ; a big fat for instance is the long lost dead Nigerian General’s son’s best friend’s banker who has $20,000,000 that he wants to wire to you for a nominal fee or the news that Bernie made off with a reported 60 BILLION+.
We will source and communicate to you from with many different levels of law enforcement, IRS, EPA, FBI,CIA and the Secret service. We will tirelessly source antidotes to find a cure for the pain and suffering these fiscal maniacs infect us with. Spammming and Phishing and other online security issues as well as Counterfeit currency or bank fraud, mortgage fraud and check kiting etc. etc. etc.
The importance of accurate and timely information will be our key objective. We will not however become a portal of fresh content for those who wish to take our data out of context with a view of a new and improved business model to further their tortures on society.
Join with us. Share your experiences and knowledge, just remember slander and defamtion are actionable, so keep personal names and identities secret and safe, everyone under the the eyes of the law are Innocent until Proven Guilty
Ponzi scheme: a fraudulent investment operation that pays returns to separate investors from their own money or money paid by subsequent investors, rather than from any actual profit earned. The Ponzi scheme usually entices new investors by offering returns other investments cannot guarantee, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors to keep the scheme going.
| Canada’s Criminal Code (¶380) defines the crime of fraud as: |
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“Every one who, by deceit, falsehood or other fraudulent means, whether or not it is a false pretence within the meaning of this Act, defrauds the public or any person, whether ascertained or not, of any property, money or valuable security or any service … (or) … with intent to defraud, affects the public market price of stocks, shares, merchandise or anything that is offered for sale to the public.” |
Pyramid scheme: a form of fraud similar in some ways to a Ponzi scheme, relying as it does on a mistaken belief in a nonexistent financial reality, including the hope of an extremely high rate of return. However, several characteristics distinguish these schemes from Ponzi schemes:
- In a Ponzi scheme, the schemer acts as a “hub” for the victims, interacting with all of them directly. In a pyramid scheme, those who recruit additional participants benefit directly.
A Ponzi scheme claims to rely on some esoteric investment approach and often attracts well-to-do investors; whereas pyramid schemes explicitly claim that new money will be the source of payout for the initial investments.
- A pyramid scheme is bound to collapse much faster because it requires exponential increases in participants to sustain it. By contrast, Ponzi schemes can survive simply by persuading most existing participants to “reinvest” their money, with a relatively small number of new participants.
| U.S. State law, modeled after an old English Law, requires certain types of contracts to be in writing. |
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Fraud is making a material misrepresentation or failing to disclose a material fact in order to induce another to give up something of value. U.S. law has adopted a 1677 English law, called the Statute of Frauds, which is a device employed as a defence in a breach of contract lawsuit. Every state has some type of statute of frauds; the law’s purpose is to prevent the possibility of a nonexistent agreement between two parties being “proved” by perjury or Fraud. This objective is accomplished by prescribing that particular contracts not be enforced unless a written note or memorandum of agreement exists that is signed by the persons bound by the contract’s terms or their authorized representatives. |
A bubble relies on the willing suspension of disbelief and an unrealistic expectation of large profits, but it is not the same as a Ponzi scheme. A bubble involves ever-rising and unsustainable prices in an open market be that shares of a stock, we all remember the dot com bubble, housing prices, or anything else we deem should appreciate. As long as buyers are willing to pay ever-increasing prices, sellers can get out with a profit, and there doesn’t need to be a schemer behind a bubble. The fact remains a bubble can arise without any fraud at all, housing prices in a local market that rise sharply but eventually drop sharply because of overbuilding or an economic downturn. Bubbles are often said to be based on the greater fool theory. Although, according to the Austrian Business Cycle Theory, bubbles are caused by expanding the money supply beyond what genuine capital investment supports, and in this case would qualify as a Ponzi scheme, with expanded credit taking the place of an expanded pool of investors, but that alone is a whole new topic.
When debts are due and the money to pay them is lacking, whether because of bad luck or deliberate theft, debtors often make their payments by borrowing or stealing from other investors, creditors or suppliers . It does not mean this is a Ponzi scheme, because from the basic facts set out there is no indication that the lenders or creditors were promised unrealistically high rates of return via claims of unusual financial investments, in most cases the creditor is simply waiting for the payment of goods or services provided, typically goods. On this basis there isn’t any indication that the borrower or debtor was progressively increasing the amount of borrowing to cover payments to initial investors or creditors, just robbing Peter to pay Paul as it where.
