See the Origin of Ponzi Scheme, the Man who Founded it and how he died Penniless

Spread the love

See the Origin of Ponzi Scheme and the Man who Founded and how he died Penniless

There are alot of Ponzi scheme this days that end up scamming people and making life miserable today in this article we shall talk about the man who founded Ponzi Scheme and How He Died.

Charles Ponzi was the notorious swindler who conned many investors into giving him millions, and then he paid them their returns, with the money of other investors, the famous fraudulent practice known as the “Ponzi scheme” was named after him.

Charles was born in 1883 in Parma, Italy and he stated that he went to the University of Rome La Sapienza but he dropped out, he came to Boston on November 15, 1903, with just $2.50 in his pocket after he has gambled all his savings during his travel.

After his arrival, he learnt how to speak English and he started doing some odd jobs where he washed dishes and he slept on the floor, eventually, he worked his way to the top and got to the position of a waiter however he was laid off because of theft.

How his crimes started

Ponzi got married to Rose Gnecco and started working in his father-in-law’s store, it was then that he got the idea that made him a very notorious criminal figure.

He once got a mail from Spain which had an international reply coupon (IRC), this is a coupon that he swapped for priority airmail postage stamps from a different country.

Ponzi then discovered that he could make a profit by purchasing IRCs in a country and then swapping them for an expensive stamp in a different country. How he achieved this was that he sent money to his employees who are working with him in different countries to buy IRCs and bring it back to United States where he would then swap the IRC for stamps that were worth far more than what he paid for them, and then he would sell these stamps.

READ ALSO  5 Famous who took their Gift and Secrets to the grave

To expand his profit he started looking for investors and he assured them that they will get a 50% return in just 45 days or they could get a 100% return in 90days.

Charles Ponzi was able to swindle $15 million from different investors in just 8 months and he paid the investors with the money of other investors instead of the actual profit he promised them.

The downfall of his scam and his death

This scam made Ponzi very rich as he even bought a mansion, however, this scam fell apart, he was arrested on the 12th of August 1920 and he was then charged with 86 counts of mail fraud and he has a debt of $7 million.

He spent 14 years in prison, his wife divorced him and he died without a penny to his name, however, his name was forever engraved in the history of fraud.

Leave a Reply