WKYT - News - Headlines  Consumer Alert: Avoiding ponzi schemes
A ponzi scheme is a carefully orchestrated financial scam, yet
there are some simple truths that make them work.  When you
mention the name Bernie Madoff, the words ponzi scheme probably
come to mind.  In 2008, Madoff admitted to stealing billions
from investors, masterminding the largest ponzi scheme in
history.  He was sentenced to 150 years behind bars.  "One thing
we have seen in these scams is that people are often brought in
by friends and family members or people from church who are
well-meaning, but fallen to the victims themselves, so people
should do their own research," said Michael D. Anderson,
Assistant U.S. Attorney.  Anderson says ponzi schemes are a
growing problem in the U.S. In fact, one recent case had almost
400 victims and a staggering $16 million in losses.  Law
inforcement and postal inspectors want investors to know the
signs of a scam.  "Something people need to be aware of is
investments offering to return 40% or even