Pyramid Schemes are also known as Ponzi Schemes. It is basically a method to send out letters to a group of people and they will send you back $1 each and everytime they pass it along to their freinds, the amount of people sending you back $1 will multiply. It's like starting small at the top of a pyramid and working down to the bigger area.

Not only are Pyramid Schemes stupid to pass along but they are also illegal! Don't ever get caught up in a situation like this even if they say they've found a legal loophole around it because certain conditions are met to make it legal.

Ponzi Schemes are named after Charles Ponzi who is a guy who started the first widespread Pyramid Scheme in 1921 and scammed thousands of people into investing in his program and they have been illegal ever since.

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