White-collar crime is a serious problem in the United States and costs Americans millions of dollars each year. This video details a fraudulent activity called a "Ponzi scheme." As this video demonstrates, a deal that appears “too good to be true” probably is. This video reveals how citizens of Sparta, Mississippi, were victimized by a Ponzi scheme.
1. How does a Ponzi scheme operate?
2. Why was this Ponzi scheme so successful?
3. How did this Ponzi scheme affect its investors?
4. What can people do to protect themselves from this type of fraudulent activity?