Of late, a lot of fraudulent ponzi schemes have come to light. Lakhs of Indian investors have lost their hard-earned money. Here's some more worrying news... Recently, MD & CEO of Amway India was arrested for alleged money laundering and breach of trust. For starters, Amway is India's largest multi-level direct selling company. In the direct selling system, products are sold directly to consumers through a network of sales agents.

With this recent arrest, the scanner is now on direct selling companies. Are they similar to other ponzi schemes? Apparently, the fault lines separating the two may be diminishing.

One of the biggest problems in a country like India is lack of investor education. Gullible investors are often duped into putting their money into questionable schemes. Inspirational success stories are told. Big promises are made. Investors are assured of mindboggling returns. Then of course, reality gives them a rude shock. And people realise they have lost a lot of money.