Who is the ‘Ponzi’ in Ponzi schemes?
Ponzi schemes — also known as pyramid schemes — are named after Charles Ponzi, an obviously persuasive con artist who attracted millions of investment dollars from Boston-area investors back in the early 1920s. He promised people he could double their money in three months through a series of investments in postal reply coupons. Fawning press articles and favourable reviews from early investors attracted ever-increasing amounts of money. In reality, he had invested nothing in postal coupons or anything else. The money provided by later investors was used to pay off the early investors. his scheme eventually collapsed amid increasing scrutiny. He was jailed and eventually deported to his native Italy. He died a poor man in Brazil in 1949.
