An investment fraud in which an individual is offered a distributorship or franchise to market a particular product. The promoter of the pyramid represents that although marketing of the product will result in profits, larger profits will be earned by the sale of franchises. Each new franchise purchaser is presented with the same proposal so that each franchise owner is attempting to sell franchises. Once the supply of potential investors is exhausted, the pyramid collapses. Many times, there are no products involved in the franchise, simply just the exchange of money.
Victim is confused by actors speedy series of money exchanges and in the end, is short changed.
Actor approaches victim with story about a gas leak or electrical surge to gain entry to the home. Valuables are taken by actor. Victim pays for the VCR or television only to discover that the box has been filled with rocks.