Ponzi schemes continue to be created; they are especially prevalent when there is a global financial crisis. The attraction of the Ponzi scheme is that it has a greater than average rate of return with little to no risk to the investors. The scheme requires new investors to pay the initial investors.

For this assignment, the ABC Accounting firm has hired you as a consultant to educate the firm about Ponzi schemes. This assignment will require you to research Ponzi schemes that occurred in 2018. This resource provides information about Ponzi schemes.

Select 1 scheme, and present your findings. Your report must include the following:

• Your definition of a Ponzi scheme (in your own words)
• Your description of the Ponzi scheme that you chose
• Your explanation about why the scheme is illegal
• Your thoughts on how this Ponzi scheme might have been detected
• An application of the fraud triangle to show how this Ponzi scheme could have been avoided