The root issue is material misrepresentation of the businesses.
They told investors lies about how well the companies were doing and how the funds were to be used.
The Ponzi part comes from paying old investors with money from new investors but telling everyone it’s from the business’ cash flow, which was a lie.
They told investors lies about how well the companies were doing and how the funds were to be used.
The Ponzi part comes from paying old investors with money from new investors but telling everyone it’s from the business’ cash flow, which was a lie.