Description :

Charles Ponzi

Charles Ponzi is where the term 'Ponzi scheme' originated from, because of his frauds in the year 1920. Ponzi being a fraudster and a con man with the mastery of speaking many languages, started a securities exchange company in the year 1920 with the promise of returning 50% profit in 45 days and 100% in 90 days, attracting a whole lot of investors within months.

The company started with the investment of about $1000 per day to millions per day. Ponzi actively returned the money for his early investors with the promised profits by the investments of the upcoming investors. He smoothly ran his company for six months by living luxuriously until the question about his profits from the investments was raised. A local news paper exposed his money making scheme to the public and the prosecutors which led to his imprisonment. Ponzi's case spread around the state like fire and attracted many individuals to follow his footsteps later in the history and thus creating the term, 'Ponzi scheme'.