A Ponzi scheme is a fraudulent investing system promising high rates of return with little risk to investors.
In brief, a Ponzi scheme generates returns for older investors by acquiring new investors. 303 more words
Charles De Ville Wells (1841 – 1922)
Charles De Ville Wells may be a relatively obscure figure these days but he has two major claims to fame – he was the man who broke the bank in Monte Carlo and perpetrated a massive fraud in France which had all the hallmarks of a Ponzi scheme a decade before Charles Ponzi was in action. 503 more words
“What we mostly learn from history is that people are unable to learn from history.”
Back in the 1920s, Carlo (Charles) Ponzi got an entire class of financial fraud named after him, when he convinced greedy investors that he had a mechanism to double their money in a short period by buying international postal coupons at a discount and redeeming them at face value. 293 more words