Capital Market Journal

Capital Markets are the cornerstone foundation of economies

Private Companies as Political Entities and Foundations, the risk of Ponzi Schemes and Political Fraud

A more complex and under-examined example of Ponzi schemes can be found within private political foundations and political parties registered as private entities. Political organizations, especially in democratic societies, are often perceived as tools of collective decision-making and social change. This perception creates a fertile ground for fraudulent activities, where activists and supporters, driven by political ideology or passion for a cause, are deceived into becoming shareholders of an entity that is little more than a private company in disguise.