Stan Is an Investment Manager

question 64

Multiple Choice

Stan is an investment manager. He has received money from various investors and given them a promise of very high returns on their investments. The invested money is not supplying enough capital to pay the returns promised, so he has started using new investors' money to pay older investors. By advertising and by word of mouth, people are anxious to invest with Stan because of the money being paid, and with the influx of new investors he is able to continue operating. Stan is:

• A) operating an insider-trading operation.
• B) racketeering.
• C) guilty of conspiracy to defraud.
• D) operating a Ponzi scheme.

---

Definitions:

Rebuilt in the Field

Refers to the process of repairing, restoring, or assembling machinery or equipment directly at the site of use or operation.

Cost Effective

Referring to an operation, process, or product that provides the best possible outcome or value for the money spent, often used in evaluating financial decisions and investments.

Spring Brake Chamber

A unit in heavy-duty vehicle braking systems that uses spring force to apply parking brakes.

Pushrod Clevis Yoke

A component in mechanical linkage systems, specifically designed to connect a pushrod to a functioning part, ensuring movement transmission.