Multiple Choice

37. Damiano borrowed money for currency speculation from several lenders and issued promissory notes in return. She promised to pay the notes in 90 days at 150% of the amount lent. She paid some notes in full after 45 days by using funds borrowed from other lenders. She collected millions but made no investments and continued to pay old notes with funds obtained from new lenders. What is the best characterization of Damiano's activities? a. A pyramid scheme 1). Embezzlement c. Alegal Ponzi scheme d. A tort but not a crime e. None of the above