zlacker

Feeder funds are a normal part of the structure of modern ponzis, Madoff had them too. Pirate40 had them. They're ubiquitous and an important part of scaling up these fraudulent operations. Essentially all HYIPs have them.

Not only do feeders increase the sales force the reduction in yield by the feeder's profit margin actually helps hit more of the potential market: People hear 20% apy and assume it's a scam... but 15% apy? 10% apy? -- starts just sounding like a good deal.