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Not every fraud is a ponzi scheme. Ponzis are a specific kind of fraud where existing investors are paid dividends using investment funds from new investors.
by bertjk 9y ago
Not every fraud is a ponzi scheme. Ponzis are a specific kind of fraud where existing investors are paid dividends using investment funds from new investors. I haven't heard that existing Theranos investors ever got payouts.
- confiscate 9y agogood comment. Most folks think in terms of absolutes, like "good vs bad", "right vs wrong", "steve jobs", "freedom", "jail", "fraud", "ponzi scheme", "criminals", and don't care about the details. People are easily misled by labels, like "Little Marco" or "Lyin' Ted" or "Crooked Hillary" All of a sudden people are calling Theranos a ponzi scheme when it's doing something completely different.