NY TIMES PUBLISHES STORY ABOUT FIRST PONZI SCHEME
New York City (JFK+50) On July 27, 1920, the New York Times published a story titled 'Made Millions By Trick Exchange'. The article followed "an expose in the Boston Post" which detailed how Charles Ponzi* swindled $15 million from unwary Bostonians in the space of eight months.
The first "Ponzi Scheme"** promised investors at 50% return in 45 days. Charles Ponzi set up his Securities Exchange Company and hired salesmen to pitch the scheme. Amazingly, in six months Ponzi had taken in $10 million from 20,000 investors and in the process became a multi-millionaire.
In his autobiography, Ponzi described all this as "money madness, the worst kind of madness...reflected in everybody's eyes."
*Charles Ponzi (1882-1949) was born in Lugo, Emilia-Romagna, Italy & attended the University of Rome La Sapienza. CP arrived in Boston in 1903 & moved to Montreal in 1907. He was a fruit peddler, dishwasher, waiter & banker but served 3 years in a Quebec prison for forgery & 2 years in Atlanta prison for smuggling.
For his Ponzi Scheme he was charged with 86 counts of mail fraud and served 3.5 years in prison. He was pardoned in 1925 but faced 9 years in state prison. CP fled to Florida, then to Texas. He was picked up in New Orleans & deported to Italy. CP died in Rio de Janerio with $75 'to his name.'
**Ponzi Scheme is a form of fraud in which belief in the source of a non-existent enterprise is fostered by payment of quick returns to the first investors from money paid by later investors.
SOURCES
"Charles Ponzi And The Incredible Story Behind His Notorious Scheme," by Genevieve Carlton, February 10, 2020, www.allthatsinteresting.com/
"Today--100: July 27, 1920: Of Ponzi schemes, Mannix!, and Macaroni," whateveritisimagainstit.blogspot.com/
Charles Ponzi
Florida Times-Union (1920)
New York City (JFK+50) On July 27, 1920, the New York Times published a story titled 'Made Millions By Trick Exchange'. The article followed "an expose in the Boston Post" which detailed how Charles Ponzi* swindled $15 million from unwary Bostonians in the space of eight months.
The first "Ponzi Scheme"** promised investors at 50% return in 45 days. Charles Ponzi set up his Securities Exchange Company and hired salesmen to pitch the scheme. Amazingly, in six months Ponzi had taken in $10 million from 20,000 investors and in the process became a multi-millionaire.
In his autobiography, Ponzi described all this as "money madness, the worst kind of madness...reflected in everybody's eyes."
*Charles Ponzi (1882-1949) was born in Lugo, Emilia-Romagna, Italy & attended the University of Rome La Sapienza. CP arrived in Boston in 1903 & moved to Montreal in 1907. He was a fruit peddler, dishwasher, waiter & banker but served 3 years in a Quebec prison for forgery & 2 years in Atlanta prison for smuggling.
For his Ponzi Scheme he was charged with 86 counts of mail fraud and served 3.5 years in prison. He was pardoned in 1925 but faced 9 years in state prison. CP fled to Florida, then to Texas. He was picked up in New Orleans & deported to Italy. CP died in Rio de Janerio with $75 'to his name.'
**Ponzi Scheme is a form of fraud in which belief in the source of a non-existent enterprise is fostered by payment of quick returns to the first investors from money paid by later investors.
SOURCES
"Charles Ponzi And The Incredible Story Behind His Notorious Scheme," by Genevieve Carlton, February 10, 2020, www.allthatsinteresting.com/
"Today--100: July 27, 1920: Of Ponzi schemes, Mannix!, and Macaroni," whateveritisimagainstit.blogspot.com/
Charles Ponzi
Florida Times-Union (1920)
