The Puzzle of Charles Ponzi
The Puzzle of Charles Ponzi
In the 1920’s, Charles Ponzi became infamous for his fraudulent scheme that scammed investors out of millions of dollars. Ponzi promised high returns on investments in a short amount of time, but in reality, he was using new investors' money to pay off earlier investors.
The scheme, now known as a Ponzi scheme, involved which of the following?
- Fake real estate investments
- Phony postage stamp speculation
- False promises of high returns from international reply coupons
Charles Ponzi's scheme ultimately collapsed, leading to his arrest and conviction for fraud. The puzzle of how he was able to deceive so many investors for so long continues to fascinate and serve as a cautionary tale for those considering investment opportunities that seem too good to be true.