Make Certain You Are Caught Up In a Scam or Ponzi Scheme

Back in 1920 a guy by the name of Charles Ponzi attracted a truckload of investors by saying he could double your money in 90 days. Ready to jump on the bandwagon? Careful, better keep the checkbook safe and secure.
Carlo “Charles” Ponzi was born in Parma, Italy 1882 and emigrated to the United States in 1903. For the next decade and then some Ponzi wandered the country and jumped from job to job. In 1917, he settled in Boston typing and answering foreign mail. This was to be the city that would awaken his mind, or if you prefer, his criminal nature.
Wanting to publish an export magazine he contacted someone in Spain telling them of his plans. The Spanish gentleman returned his letter and included an international postal reply coupon. And what was he supposed to do with this? Simple, drop by the local post office and exchange it for American stamps. In turn he'd use those stamps to send his publication to the man in Spain.
But fate stepped in when Ponzi saw the postal coupon had been purchased in Spain for about $0.01 cents, but worth $0.06 in American stamps. Wow! His brain went into overdrive. If he could buy $100 worth of these coupons in Spain and in turn cash them in America for $600, he could quickly become rich. So his devious mind set off to turn his dream into reality.
Step one, convert his American cash to foreign currency (using a country with a favorable exchange rate, usually ones with a weak economy). He of course needed to employ friends and/or agents in other companies to purchase the postal coupons, but they were quickly found.
Step two, exchange the coupons in other countries for local currency. Step three, change that currency back to American green backs. His claim for these transaction was a profit greater than 400%... Wow again! Of course it didn't actually happen that way, red tape, currency exchange delays, etc., cut deeply into his profits.
Yet, like a true dreamer or schemer, he wasn't defeated, instead he talked the talk and walked the walk and found people believed (greed can affect us all) what he was saying and wanted in on the profits. Well, he wasn't about to let that opportunity pass, so in late 1919 he established a company called "The Security Exchange Company" promising 50% in 90 days and it was an IMMEDIATE success. People began lining up to give him money, handing over from $10 to $50,000, dreams of riches dancing in their heads like sugar plums
But wait, didn't these greedy masses know about the problems he's experienced with red tape, exchange rates, etc.? Well, if you've ever seen a creative resume (yours maybe?) then you'll know he talked more about the GOOD, rather than the problems. Plus, early investors DID get paid... they got paid however not from his scheme actually working, rather from the proceeds of new investors.
At the height of it's popularity he was taking in ONE MILLION per week. And just think that was in 1919 dollars, an amazing amount of money, and particularity if you translate it to today's dollars. 1920 was a great year, Ponzi was living the dream, dressing to the hilt, buying diamond for his wife, mansions to live in and achieving legendary fame . They say the greatest compliment is when someone copies you, well believe me the copycat "Ponzies" were popping up like wildflowers.Ever heard the expression "whatever goes up, has to come down?"
Truer words were never spoke and in mid 1920 Ponzi started to fall when the Boston Post featured a story about what they referred to as "A scheme". The people descended in droves, banging on his door asking for their money back. While shaken, Ponzi stood up to the masses, returning the money of approximately 1000 and quieting the crowd. So this wasn't the end, rather the beginning of the end, some hailed him as a hero and suggested he enter politics. It's possible he believed his own dream, since he didn't run, rather talked of future plans like a bank where profits would be divided among the shareholders and depositors. Plus, he planned to reopen his initial company under a new name "The Charles Ponzi Company". He was either to honest or to caught up in his own dream to "take the money and run".
But it was soon to end. In August of 1920 he was declared bankrupt and confessed he had a criminal record for forgery. Ouch! Plus a two year stint in prison for smuggling. Later than month he was arrested and released on $25,000 bond. No sooner did he walk out the door, when he was arrested again by Massachusetts officials. Again he was released for another $25,000 bond. Yep, he had the money.
Pandora's box had been opened and what was to follow was a true mess of federal and state trials, bankruptcy hearings, lawsuits and the closing of five banks. All the while he was faced with trying to return the investments of the initial group he had bamboozled. All total about 40,000 people had invested (or trusted) $15,000,000 (Fifteen Million) with Ponzi. This money, had it been used as stated, could have bought about 180,000,000 postal coupons. How many were actually bought? Two, good god man.
Ponzi was sentenced to five years in prison for mail fraud, then later an additional seven to nine years by Massachusetts's authorities. Guess you could say he got smart now and released he was at the end of his rope. On being released on a $14,000 bond, he quickly disappeared. Where? For awhile no one knew, but just like a leopard can't change his spots, neither could Ponzi. He turned up in Florida under an assumed name promoting a land scheme. Here's another expression for you.
"If you believe that, I've got some land in the Everglades for sale"
Ever hear that? Well Ponzi was selling land that was mostly underwater. Great for the fishes, bad for us homosapiens.
The story doesn't end there, but that's the crux of it; he went to prison again, jumped bail, was recaptured, extradited to Boston and released after seven years for good behavior and deported to Italy where he schemed, worked for Mussolini and eventually died in 1949 nearly penniless.