Christopher A. Wellborn, P.A. South Carolina Criminal Defense Attorney | Over 25 Years Experience
Call Today | Free Consultation 803-746-4302

A pyramid scheme can look a lot like a legitimate enterprise

There is no shortage of South Carolina companies out there that promote the chance to earn immediate income and acquire residual wealth by following a proven formula. Sometimes, however, if the opportunity seems too great to be true, it just may be. That's why investors and consumers should be aware of some signs that an enterprise may be fraudulent.

Many bogus enterprises are designed to look like legitimate businesses to encourage well-meaning investors to participate. In so-called pyramid schemes, early investors often do see a return on their investments. This encourages new investors hoping to capitalize in the same way. The first recognized pyramid scheme was perpetrated by Charles Ponzi over 100 years ago. This scam involved over $15 million in ill-gotten cash. Unfortunately, pyramid schemes most often actually sell nothing and generate cash simply from new investors' fees.

Legitimate multi-level marketing opportunities that actually offer a product or service for sale can look very much like illegal pyramid schemes. Part of the reason for the confusion is that both types of businesses have similar characteristics. MLMs rely heavily on recruitment with less emphasis on the product. In fact, latecomers to an MLM business may find it all but impossible to make money.

It is common for a federal investigation to be in operation before white-collar criminal charges are filed. If an individual knows or suspects that they are the subject of an investigation, it is important to retain the advice of a white-collar criminal lawyer as soon as possible. Legal counsel could protect the rights of a suspect.

No Comments

Leave a comment
Comment Information
 York County Bar Association South Caroline Bar NACDL South carolina association of criminal defense lawyers United states court of appeals | For the Fourth Circuit
Email Us For a Response

Tell Us About Your Case - Schedule A Free Consultation

To schedule a confidential appointment with an experienced South Carolina criminal defense attorney, please call 803-746-4302 or fill out this form:

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Christopher A. Wellborn, P.A.
142 Oakland Avenue, Suite C
Rock Hill, SC 29730

Toll Free: 866-635-6765
Phone: 803-746-4302
Fax: 803-980-0952
Rock Hill Office Location