9. Royal Manchester Five Trading Corporation (RMF) Pyramid
Amount: $4 million
Year: 2008
This is the first of the pyramid schemes to encounter on this list of biggest accounting scandals in recent years in the Philippines. How does it work? It is a rather simplistic, but eventually unfair principle. A company, such as this one, promises to deliver its investor a certain amount after the defined period. How does he/she get the revenue? By asking friends, relatives, acquaintances to join in and invest. The company initially is able to provide regular payments to its investors. However, this course of action must come to an end since it is practically impossible to sustain forever. It usually lasts for a couple of years at best until the founder(s) takes what money is left (usually a very high sum) and flees the country. Fun fact: such companies usually have an eye catching and appealing names.
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