I'm not a regulator or an expert in Ponzi Schemes, but I did find the definition very interesting.
Here is a definition of a Ponzi Scheme from the U.S. Commodity and Futures Trading Commission:
Ponzi Scheme: Named after Charles Ponzi, a man with a remarkable criminal career in the early 20th century, the term has been used to describe pyramid arrangements whereby an enterprise makes payments to investors from the proceeds of a later investment rather than from profits of the underlying business venture, as the investors expected, and gives investors the impression that a legitimate profit-making business or investment opportunity exists, where in fact it is a mere fiction.
Sound similar? What do you think?Mr. Smith and his staff indicated that they offer a business opportunity; however, they do not make any lifestyle promises based on earning potential. Similarly, he indicated that the only promise the business makes to potential clients is to pay for the recruitment of registered customers and the recruitment of others to do the same.
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Well here is my opinion to this whole thing. Most so called Network Marketing companies do pay for recruiting new customers and I am sure everyone knows this pretty well. ijango offers an affiliate program for a one time $50 fee, suppose to be fully refundable within 90 days. I am not really sure what is going on with ijango and would like to know why they are a thorn in so many eyes. I would like to know if someone actually got paid.