The Goldberg Law Firm

Need an experienced lawyer, with a successful record at trial? Call us. 216-592-8719

We Get Results Because We Prepare for Trial
rated by super lawyers michael j. goldberg
av preemeinent rating by martindale-hubbel client champion silver 2024
“Super Lawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high-degree of peer recognition and professional achievement. The patented selection process includes independent research, peer nominations and peer evaluations.”

What’s the history of the ‘Ponzi scheme?’

On Behalf of | Dec 14, 2018 | Ponzi Schemes, White Collar Crimes

Charles Ponzi was a man whose name went down in history for the “scheme” he developed to take money from unsuspecting investors. Since the days of Charles Ponzi, his money-grabbing scam has been replicated by countless white collar criminals on scales from large to small.

Charles Ponzi’s name became associated with the word “Ponzi Scheme” in the 1920s after authorities and investors discovered the Ponzi had defrauded millions of dollars from his trusting investors. The Ponzi scheme worked by taking money from new investors to pay older investors. The scam involved the purchase of discounted postage coupons with investor money. What was really happening was, as new investors joined the pool and sent money, Ponzi would use this money to pay the older investors. The scam was earning Ponzi himself over $250,000 a day.

Ponzi primarily targeted working-class people who dreamed of becoming wealthy through investing. Ponzi was later sentenced to serve 14 years in prison. It’s said that he later moved to Brazil, where he died a poor man.

Ponzi became so famous for his legendary scam that his name was tied to the deceptive criminal method he used. To this day, everyone knows the term Ponzi to be a type of investment fraud.

Not all individuals who are accused of running a Ponzi scheme are actually guilty of the offense. If you’ve been accused of a criminal act like this, you might want to look into the legal options you can employ for your defense. You might have powerful criminal defense strategies at your disposal that can assist you in defending against your charges.


FindLaw Network