• Define Ponzi scheme. How do Ponzi schemes differ from Pyramid schemes? Was this truly a Ponzi-related scheme?
• What are the red flags of such investment scams, and how can one differentiate between an illegal scheme and just an innocent investment tip? Explain.
• How do such actions affect consumers and the public? Are certain individuals targeted?
• Finally, how can consumers avoid such shady situations in the future? Explain.

Please help to answer in own words. Please do not copy and paste what has already been put on chegg. I do not understand those.