By David Shepardson
DISH Wireless, a subsidiary of US telecoms giant EchoStar, has agreed to pay $17.3 million to ?resolve a U.S. government fraud investigation.
The probe examined whether the company signed up ?ineligible consumers to take part in a pandemic-era program that provided subsidized broadband services to millions of Americans.
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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.