The 28th Eastern Caribbean Securities Market (ECSM) Certification Program Workshop and Examination will be held from the 22nd to the 29th of July and the 8th of August to the 12th of August 2025. The objective of the programme is to familiarise participants with the principles and operations of the ECSM; and to prepare prospective market participants for the ECSM Certification Examination. Click on the link to download registration form.
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In the classic "pyramid" scheme, participants attempt to make money solely by recruiting new participants. The hallmark of these schemes is the promise of sky-high returns in a short period of time.
Pyramid scheme promoters may go to great lengths to make the program look like a multi-level marketing program selling legitimate products or services. But these fraudsters use money from new recruits to pay off early stage investors until eventually, the pyramid collapses. At some point, the schemes get too big, the promoter cannot raise enough money from new investors to pay earlier investors, and people lose their money.
Ponzi and pyramid schemes are closely related because they both involve paying longer-standing members with money from new participants, instead of actual profits from investing or selling products to the public. Here is how to tell them apart:
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Pyramid Scheme |
Ponzi Scheme |
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Typical “hook” |
Earn high profits by making one payment and finding others to become distributors of a product. The scheme typically does not involve a genuine product. The purported product may not exist or it may be "sold" only to other people who also become distributors. |
Earn high investment returns with little or no risk by simply handing over your money; often the investment does not exist or only a small percentage of incoming funds are actually invested. |
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Payments |
Must pay a one-time or recurring participation fee and recruit new distributors to receive payments. |
No recruiting necessary to receive payments. |
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Interaction with original promoter |
Sometimes none. New participants may enter the pyramid scheme at different levels. |
Promoter generally interacts directly with all participants. |
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How the scheme works |
Funds from new participants are used to pay recruiting commissions to earlier participants. |
Funds from new investors are used to pay purported returns to earlier investors. |
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Collapse |
Fast. An exponential increase in the number of participants is required at each level. |
May be relatively slow if existing participants reinvest money. |
