You must be wondering why I am writing about Ponzi schemes today. First, I was requested by a someone.
Secondly, if you read the last article here I wrote before last Christmas, you will know. Anyway, it was an alternative investment suggested in the list of ideas that can turn UGX3Mn into UGX30Mn in six months. Not a bad idea, but what is a Ponzi scheme?
But first, let me tell you about my experience with Ponzi schemes or near-Ponzi schemes. For ‘near-Ponzi schemes’, allow me to refer to multi-level marketing (MLM) companies.
While in my second year at university (UCU) a neighbour friend of mine approached me one day. He was in year 1 of his Development Studies degree. I used to see him pass near our place every morning with a sling bag and dressed smartly in a suit and tie.
One day he met me and we chatted. I asked him whether he was a student at campus. He said ‘yes’. But I never used to see him during day, only evenings as my lectures ended. He said he worked during day and studied in the evening. I asked him what exactly he did in his job.
He said he worked for GNLD company. I asked further what the company did then he pulled out a brochure and some booklets of the company to show me, adding that it was a company selling/marketing health products or supplements.
‘So you sell them?,” I asked. He said ‘yes’. But when I looked at the prices, they were very scary, way above those of ordinary pharmaceutical products because some of them…
