Kingsley Kobayashi, CEO Founder Kobayashi Group Japan
Yesterday I saw an article about Zach Avery, a young aspiring actor, who was arrested in April 2021 by the FBI and accused of scamming millions of dollars from investors and running a 650 mil.$ Ponzi scheme. He was promising his investors extremely high returns and used well-known companies’ names to make his promises seem legit. But he knew it was a lie and used the money to fund his lavish lifestyle. At some point, he was able to pay off some investors, using money from other investors to do it, but eventually, he started to fall behind on his payments, and investors started to raise voices. Yesterday, September 9th,2021, Zach Avery pleaded guilty to operating 650 mil dollars Hollywood Ponzi scheme. While Zach Avery repaid lots of the money to lure more victims into investing more, he still failed to return 231 million dollars and is facing up to 20 years in prison.
So what is the Ponzi scheme, how can you detect it, and what can you do not fall victim?
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