Are HYIP's Legal? If so what countries and what legal documents are there on this?

[Scott C]

United Kingdom and The US are the main countries i would like to know about.

[Bob]

HYIP is not "illegal" per se.

It's just that I've never seen a legitimate investment manager use the term. These "investment plans" typically use the promise of a "high yield" to get people to send them money, which the organizers run off with.

Sometimes, early investors will be paid with money paid in by later investors, to build credibility. Remember: seeing your balance grow on your account statement doesn't mean you've made money; it's easy to cook up beautiful statements with fake numbers.

HYIPs are not illegal. Making false statements in the advertising is illegal, and they all do it. Creating false documents is illegal and they all do it to the extent that they show you documents at all.

[Bob]

HYIP is not "illegal" per se.

It's just that I've never seen a legitimate investment manager use the term. These "investment plans" typically use the promise of a "high yield" to get people to send them money, which the organizers run off with.

Sometimes, early investors will be paid with money paid in by later investors, to build credibility. Remember: seeing your balance grow on your account statement doesn't mean you've made money; it's easy to cook up beautiful statements with fake numbers.

HYIPs are not illegal. Making false statements in the advertising is illegal, and they all do it. Creating false documents is illegal and they all do it to the extent that they show you documents at all.