A Ponzi scheme is a fraudulent investment operation where the operator (an individual or organization) pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources.
Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent.
A pilot scheme is something that is done on a small scale in order to see if it is successful enough to be done on a larger scale.
