Speaker 1 Kevin is very quick to think negative things about people. Even when he talks about his best friend, he always tells you about his faults. And if somebody hasn’t got any faults, he invents them

Presenter

Freya Wilcox, thank you for joining us.

Freya

My pleasure.

2.30 Cumulative Review 4, Exercise 1

Presenter

Hello and welcome to the programme. Today 

we’re going to look at a kind of financial fraud 

known as a Ponzi scheme. Trudy Metcalf is 

here to tell us how it works. Trudy?

Solutions

 

Third Edition

 Upper-Intermediate

 

2

Audio scripts

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Trudy

Hello. Yes, a Ponzi scheme is run by a 

dishonest person who sets up a fake business 

and convinces people to invest money in it. The

investors get money back on their investments, 

which makes the business look successful. So, 

another group of investors comes along. Their 

money is used to cover the money that was 

paid to the first group. When a third group 

comes to invest, their money is used to pay the 

second group, and so it continues.