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For each person the investor recruits, they get a share of their investment. The remainder of the "investment" is divided among the other investors.
The structure of investors is basically a hierarchy. This scheme is a perpetual cycle that will only end after multiple people have lost large sums of money in their "investments." This scheme is profitable only to those at the top of the hierarchy.
Pigeon Drop
The Pigeon Drop often occurs where large amounts of people are, such as at malls and in the parking lots of shopping complexes. The most common victims are older women and the con artists usually involve one or two young, attractive women...
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