NEWS
Federal prosecutors said former U.S. Postal Service letter carrier Christopher Powell, 37, of Detroit, was sentenced to 20 months in federal prison for fraudulently obtaining more than $166,000 in unemployment insurance benefits.
Read: https://www.clickondetroit.com/news/local/2026/10/15/former-detroit-usps-worker-sentenced-to-20-months-for-unemployment-fraud/
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.