Connection To Franchise Fraud
Franchise fraud (or 'franchise churning') is defined by the U.S. Federal Bureau of Investigation as a pyramid scheme. The FBI website states:
- pyramid schemes :—also referred to as franchise fraud or chain referral schemes—are marketing and investment frauds in which an individual is offered a distributorship or franchise to market a particular product. The real profit is earned, not by the sale of the product, but by the sale of new distributorships. Emphasis on selling franchises rather than the product eventually leads to a point where the supply of potential investors is exhausted and the pyramid collapses.
One of Pearlasia Gamboa’s (president of the micronation of Melchizedek) franchise fraud schemes was described by the Italian newspaper La Repubblica as “one of the most diabolical international scams ever devised in recent years.”
Read more about this topic: Pyramid Scheme
Famous quotes containing the words connection, franchise and/or fraud:
“Much is made of the accelerating brutality of young people’s crimes, but rarely does our concern for dangerous children translate into concern for children in danger. We fail to make the connection between the use of force on children themselves, and violent antisocial behavior, or the connection between watching father batter mother and the child deducing a link between violence and masculinity.”
—Letty Cottin Pogrebin (20th century)
“To-day women constitute the only class of sane people excluded from the franchise ...”
—Mary Putnam Jacobi (1842–1906)
“Things gained through unjust fraud are never secure.”
—Sophocles (497–406/5 B.C.)