Ponzi scheme was a payment system devised in 1920 by Charles Ponzi outside regulatory monetary system.
Ceylon Ponzi Schemes are done by bogus astrologers.
I would dispense (thanks to YouTube presentation) three physical properties of an egg (biological), magnet (physics) and carbide (chemical)
1. Egg is rotated in a ceramic dish by exerting simple physical force.
2. A safety pin stuck under a betel (bulath) leaf using a magnet.
3. Putting carbide to a top opened king coconut.
In Ceylon Manios also use all these methods.
I think we should get Simpson's creator to Ceylon and display these antics.
Carlo Ponzi was an Italian.
He started this scheme without a base capital.
On surface it looks legit.
Has attractive portfolio with high interest.
Pays high risk interests.
The payments are made to the earlier investors from the new investors.
Investors are encouraged to reinvest without new capital.
Its premise is that all the investors would not withdraw money at the same time.
The are not registered with the central bank.
They are no licenced sellers.
Part of the money is invested by the schema himself elsewhere on true institutes.
They scam people for a while and disappear leaving without a trace.
Arjuna Mahendran is one of them who operated somewhat similar scams by bidding below the banking rate with insiders helping to fix the asking rate.
He disappeared and has already changed his name and the name of the institute.
The money is siphoned away.
They have overseas (dual citizens) base to escape.
Even big investors can be caught up by Ponzi schemes.
Two big names are Milinda Moragoda and Lalith Kotalawela.
Both of them destroyed their grandparents capital in a very short time frame
Both of them had political aspirations.
Politicians are very cruel and won't allow outsiders with money to come into their arena.
They (politicians) deal with black or drug money.
Some of them have TV channels to launders money.
These operations are an extension of the Ponzi scheme with a different Frontend.
the Backend is invisible.
By the way, no investment is risk free.
Successful financiers are good risk takers.
English Nielson was one of them who brought the oldest bank to its knees in England.
Pyramid scheme is bit different.
To begin with there is some apparent capital investment that is shared with or resold to new investors.
If the number of new investors diminish or capital is withdrawn these schemes fail rapidly.
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