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:
“Morality becomes hypocrisy if it means accepting mothers’ suffering or dying in connection with unwanted pregnancies and illegal abortions and unwanted children.”
—Gro Harlem Brundtland (b. 1939)
“To-day women constitute the only class of sane people excluded from the franchise ...”
—Mary Putnam Jacobi (1842–1906)
“He saw, he wish’d, and to the prize aspir’d.
Resolv’d to win, he meditates the way,
By force to ravish, or by fraud betray;
For when success a lover’s toil attends,
Few ask, if fraud or force attain’d his ends.”
—Alexander Pope (1688–1744)