Stan Is an Investment Manager

question 7

Multiple Choice

Stan is an investment manager.He has received money from various investors with a promise of very high returns on their investments.The invested money is not supplying enough capital in order to pay the returns promised so he has started using new investor's 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

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Definitions:

Acellular

Consisting of, or pertaining to, non-cellular structure, lacking cells.

Viruses

Microscopic infectious agents that replicate only inside the living cells of organisms, capable of causing a wide range of diseases.

Photosynthetic Bacteria

Bacteria capable of photosynthesis, a process that converts light energy into chemical energy, thereby producing oxygen as a by-product, crucial for earth's oxygen supply.

Chemosynthetic Bacteria

Microorganisms that obtain energy by converting inorganic molecules to organic matter, independent of sunlight.