(HYIP's) The fraud artists ... seek to mislead investors by suggesting that well regarded and financially sound institutions participate in these bogus programs.
"[3] Some investors try to make money by attempting to invest in HYIPs at an early enough stage to create a return, and then by cashing out before the scheme collapses to profit at the expense of the later entrants.
[4] On August 17, 2012, the U.S. Securities and Exchange Commission (SEC) filed a complaint against defendants Paul Burks and Zeek Rewards, based in North Carolina.
Paul Burks ran Zeek Rewards, an "investment opportunity" that promised investors returns by sharing in the profits of Zeekler, a penny auction website.
The SEC stated that the Zeekler website brought in only about 1% of the Zeek Rewards company's purported income and that the vast majority of disbursed funds were paid from new investments.
[16] Other HYIPs that have been shut down due to legal action includes Ginsystem Inc, the infamous Sunshine Empire in Singapore,[17] City Limouzine, Future Maker Pvt.