what is a financial Pyramide

Financial pyramids are the most well-known and widespread method of extorting money from citizens. Surprisingly, joining a financial pyramid is usually voluntary and without legal support. Thus, no one guarantees the return of invested funds. According to Article 217 of the Criminal Code of the RoK, criminal liability is provided for the creation and management of a financial pyramid.
The main feature of the financial pyramid is the promised huge profits, extra income. The promise of high returns can be fulfilled only once to attract the organization, but the risk of losing even more funds is very high.
The second sign is that the company is not engaged in real economic or investment activities. Pyramids are disguised as commodity, credit, tourism, construction companies. However, in reality, all payments to old depositors are made at the expense of new depositors.
The third feature is that such projects do not have a material and legal basis, ie these companies are newly created, do not have financial statements, do not enter into agreements or agreements are made only for the benefit of the organizers and do not comply with the legislation of the Republic of Kazakhstan.
If you have any doubts about the activities of the financial pyramid, you can contact the Department of Economic Investigation of the West Kazakhstan region by the following hotline: 8 (7112) 53-84-27