{"id":375696,"date":"2016-03-31T21:36:20","date_gmt":"2016-04-01T02:36:20","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/ohio-law\/ohio-pyramid-and-ponzi-scheme-laws.html"},"modified":"2016-06-20T23:00:00","modified_gmt":"2016-06-21T04:00:00","slug":"ohio-pyramid-and-ponzi-scheme-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/ohio-law\/ohio-pyramid-and-ponzi-scheme-laws.html","title":{"rendered":"Ohio Pyramid and Ponzi Scheme Laws"},"content":{"rendered":"\n
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Ohio Pyramid and Ponzi Scheme Laws<\/h1>\n
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Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last reviewed\n

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In Ohio, investment fraud<\/a> can happen in a number of ways. Two of the most prevalent scams are "Pyramid<\/a>" and "Ponzi<\/a>" schemes.<\/p>\r\n

Pyramid sales plans operate like giant chain letters. Participants pay to join, then recruit others in order to profit from the new recruits’ fees. Although there may be some profit for the handful of people who join at the beginning, the remaining investors inevitably lose all their money.<\/p>\r\n

A Ponzi scheme is a fraudulent investment operation that pays returns to investors from their own money or money paid by later investors rather than from actual earned revenue.<\/p>\r\n

Ohio prohibits these type of activities under the following laws:<\/p>\r\n