Editing Pyramid scheme (section)

== Notable cases ==
The [[1997 Albanian civil unrest]] was partially motivated by the collapse of [[Ponzi scheme|Ponzi schemes]]; however, they were widely referred to as pyramid schemes due to their prevalence in Albanian society.<ref>{{Cite web |url=http://www.imf.org/external/pubs/ft/fandd/2000/03/jarvis.htm |title=Finance and Development |website=Finance and Development {{!}} F&D |language=en-US |access-date=2018-07-04}}</ref>{{what|date=June 2024}}

In 2003, the United States [[Federal Trade Commission]] (FTC) disclosed what it called an Internet-based "pyramid scam." Its complaint states that customers would pay a registration fee to join a program that called itself an "internet mall" and purchase a package of [[goods and services]] such as internet mail, and that the company offered "significant commissions" to consumers who purchased and resold the package. The FTC alleged that the company's program was instead and in reality a pyramid scheme that did not disclose that most consumers' money would be kept, and that it gave affiliates material that allowed them to scam others.<ref name="ftc-internetmall">[http://www.ftc.gov/opa/2003/07/nexgen.htm FTC Charges Internet Mall Is a Pyramid Scam] ''Federal Trade Commission''</ref>

[[WinCapita]] was a scheme run by Finnish criminals that involved about €100&nbsp;million. The scheme started in 2005.<ref>{{Cite web |url=https://yle.fi/uutiset/osasto/news/ss_some_wincapita_ponzi_scheme_victims_to_soon_receive_compensation/9185950 |title=SS: Some WinCapita Ponzi scheme victims to soon receive compensation |website=Yle Uutiset |date=22 September 2016 |language=en |access-date=2018-07-04}}</ref>

In early 2006, [[Republic of Ireland|Ireland]] was hit by a wave of schemes with major activity in [[Cork (city)|Cork]] and [[Galway]]. Participants were asked to contribute €20,000 each to a "Liberty" scheme which followed the classic eight-ball model. Payments were made in [[Munich]], [[Germany]], to skirt Irish tax laws concerning gifts. Spin-off schemes called "Speedball" and "People in Profit" prompted a number of violent incidents and calls were made by politicians to tighten existing legislation.<ref>[http://archives.tcm.ie/irishexaminer/2006/03/23/story514972170.asp Gardaí hold firearm after pyramid scheme incident] {{webarchive|url=https://web.archive.org/web/20080323234753/http://archives.tcm.ie/irishexaminer/2006/03/23/story514972170.asp |date=2008-03-23 }} ''Irish Examiner''</ref> Ireland has launched a website to better educate consumers to pyramid schemes and other scams.<ref>{{cite web|url=http://www.consumerconnect.ie/eng/ |title=National Consumer Agency Ireland |publisher=Consumerconnect.ie |access-date=2013-04-02}}</ref>

On 12 November 2008, riots broke out in the municipalities of [[Pasto (Colombia)|Pasto]], [[Tumaco]], [[Popayán]] and [[Santander de Quilichao]], [[Colombia]], after the collapse of several pyramid schemes. Thousands of victims had invested their money in pyramids that promised them extraordinary interest rates. The lack of regulatory laws allowed those pyramids to grow excessively for several years. Finally, after the riots, the Colombian government was forced to declare the country in a state of economic emergency to seize and stop those schemes. Several of the pyramid's managers were arrested, and prosecuted for the crime of "illegal massive money reception."<ref>{{Cite video
 | title = Colombians riot over pyramid scam
  | publisher = [[BBC News]]
  | location = Colombia
  | url =http://news.bbc.co.uk/2/hi/americas/7726069.stm
  | date = Nov 13, 2008}}</ref>

The ''[[Kyiv Post]]'' reported on 26 November 2008 that American citizen Robert Fletcher (Robert T. Fletcher III; aka "Rob") was arrested by the SBU (Ukraine State Police) after being accused by Ukrainian investors of running a Ponzi scheme and associated pyramid scam netting US$20&nbsp;million. (The ''Kyiv Post'' also reported that some estimates were as high as US$150&nbsp;million.)<ref>{{Cite news |url=https://www.kyivpost.com/article/content/ukraine-politics/caught-american-arrested-in-kyiv-on-suspicion-of-f-31310.html |title=Caught! American arrested in Kyiv on suspicion of fraud – Nov. 26, 2008 |date=2008-11-26 |newspaper=Kyiv Post |language=en-US |access-date=2018-07-04|last1=Rachkevych |first1=Mark }}</ref>

In the United Kingdom in 2008 and 2009, a £21&nbsp;million pyramid scheme named 'Give and Take' involved at least 10,000 victims in the south-west of England and South Wales. Leaders of the scheme were prosecuted and served time in jail before being ordered to pay £500,000 in compensation and costs in 2015. The cost of bringing the prosecution was in excess of £1.4&nbsp;million.<ref>{{cite web|url=https://www.bbc.co.uk/news/uk-england-bristol-34242680|title=Prosecuting members of a £21m pyramid scheme cost taxpayers £1.4m|date=14 September 2015|website=bbc.co.uk}}</ref>

A number of authorities around the world declared TVI Express to be a pyramid scheme in 2010 and 2011, including the [[Australian Competition & Consumer Commission]], the [[Bank of Namibia]], and the [[Central Bank of Lesotho]]. TVI Express, operated by Tarun Trikha from India, has apparently recruited hundreds of thousands of "investors", very few of whom, it is reported, have recouped any of their investment.<ref name="ACCC-TVIExpress">[http://www.accc.gov.au/content/index.phtml/itemId/928564/fromItemId/142 ACCC obtains restraining orders against operators of alleged pyramid selling scheme TVI Express] {{webarchive|url=https://web.archive.org/web/20110602080313/http://www.accc.gov.au/content/index.phtml/itemId/928564/fromItemId/142 |date=2011-06-02 }} ''Australian Competition and Consumer Commission''</ref><ref name="Namibia-TVIExpress">[http://www.republikein.com.na/die-mark/bon-warns-public.115812.php BoN warns public about TVI Express] {{Webarchive|url=https://web.archive.org/web/20111004065745/http://www.republikein.com.na/die-mark/bon-warns-public.115812.php |date=2011-10-04 }} ''Bank of Namibia''</ref><ref name="Lesotho-TVIExpress">[http://www.centralbank.org.ls/news/TVI%20Express.htm BoL warns public about TVI Express] {{webarchive|url=https://web.archive.org/web/20111003001143/http://www.centralbank.org.ls/news/TVI%20Express.htm |date=2011-10-03 }} ''Bank of Lesotho''</ref><ref name="LE-TVIExpress">[http://www.timeslive.co.za/news/2011/08/14/promises-broken-claim-cops South African Sunday Times on TVI Express] ''[[Sunday Times (South Africa)]]''</ref><ref name="CWBotswana">[http://consumerwatchdogbw.blogspot.com/search/label/TVI%20Express Consumer Watchdog Botswana on TVI Express] ''Consumer Watchdog Botswana''</ref>

[[BurnLounge]], Inc. was a multi-level marketing [[digital music store]] founded in 2004 and based in New York City. By 2006 the company reported 30,000 members using the site to sell music through its network. In 2007, the Federal Trade Commission sued the company for being an illegal pyramid scheme. The company lost the suit in 2012, and lost appeal in June 2014. In June 2015, the FTC began returning $1.9&nbsp;million to people who had lost money in the scheme.<ref>{{cite news|last1=Hull|first1=Tim|title=9th Circuit Affirms BurnLounge Judgment|url=http://www.courthousenews.com/2014/06/02/68376.htm|access-date=2014-06-19|work=[[Courthouse News Service]]|date=2 June 2014}}</ref>

In August 2015, the United States FTC filed a lawsuit against [[Vemma|Vemma Nutrition Company]], an Arizona-based [[dietary supplement]] Multi-Level Marketing firm, accused of operating an illegal pyramid scheme. In December 2016, Vemma agreed to a $238&nbsp;million settlement with the FTC, which banned the company from "pyramid scheme practices" including recruitment-focused business ventures, deceptive income claims, and unsubstantiated health claims.<ref>{{cite web|title=Vemma Agrees to Ban on Pyramid Scheme Practices to Settle FTC Charges|url=https://www.ftc.gov/news-events/press-releases/2016/12/vemma-agrees-ban-pyramid-scheme-practices-settle-ftc-charges|website=FTC.gov|date=15 December 2016 |access-date=2016-12-22}}</ref><ref>{{cite web|title=Vemma reaches $238 million settlement with FTC|url=https://www.truthinadvertising.org/vemma-pay-millions-settlement-ftc/|website=TruthInAdvertising.org|access-date=2016-12-22}}</ref>

In March 2017, Ufun Store, registered as an online business for its members as a direct-sales company, was declared to be operating a pyramid scheme in Thailand. The Criminal Court handed down prison terms totaling 12,265 to 12,267 years to 22 people convicted over the scheme, which conned about 120,000 people out of more than 20&nbsp;billion baht.<ref>{{Cite news|title=Ufun fraudsters sentenced to thousands of years|url=https://www.bangkokpost.com/thailand/general/1219257/ufun-fraudsters-sentenced-to-thousands-of-years|access-date=2020-08-08|newspaper=Bangkok Post|date=22 March 2017 }}</ref>

The Airplane Game scheme resurfaced in 2020 as a savings club by the name of the Blessing Loom, Blessing Circle, Sending Flower, Gifting Flower, and so on. It is also misrepresented as a [[Susu (informal loan club)|Sou-Sou]], a legitimate savings club model where the number of people paying into the pot is fixed and each person gets a payout regularly. This is distinct from the pyramid scheme variation making use of the hierarchical flower model,<ref>{{Cite web|title=BE AWARE: 'Blessing Loom' scam is resurfacing on social media|url=https://www.cbs19.tv/article/news/local/be-aware-blessing-loom-scam-is-resurfacing-on-social-media/501-63996499-0136-4203-8c7e-2e6221bf5fe4|access-date=2020-08-08|website=cbs19.tv|date=21 April 2020 |language=en-US}}</ref> where new members are continually recruited into the group by people at the edges of the flower. This re-imagining of the old Airplane/8-ball model is making a resurgence on social media platforms such as [[Instagram]] and Zoom.<ref>{{cite web|title=Blessing Loom Ponzi Scam: Beware|url=https://www.onlinethreatalerts.com/article/2020/4/20/blessing-loom-ponzi-scam/|website=OnlineThreatAlerts.com|access-date=2020-07-07}}</ref><ref>{{cite web|title='Blessing looms' pyramid scheme sweeps across Houston|url=https://www.click2houston.com/news/2016/12/08/blessing-looms-pyramid-scheme-sweeps-across-houston/|website=Click2Houston.com|date=8 December 2016 |access-date=2020-07-07}}</ref>