Portal:Business/Selected article/49
Charles Ponzi (March 3, 1882 – January 18, 1949) was one of the greatest swindlers in American history. His aliases include Charles Ponei, Charles P. Bianchi, Carl and Carlo. The term "Ponzi scheme" is a widely known description of any scam that pays early investors returns from the investments of later investors. He promised clients a 50% profit within 45 days, or 100% profit within 90 days, by buying discounted postal reply coupons in other countries and redeeming them at face value in the United States as a form of arbitrage.[1] Ponzi was probably inspired by the scheme of William F. Miller, a Brooklyn bookkeeper who in 1899 used the same pyramid scheme to take in $1 million.[2]
- ^ "Ponzi Payment". Time magazine. January 5, 1931. Retrieved 2008-12-21.
In 1920 thousands of gullibles had a more ornate picture of him. He was then the shrewd, straight-eyed miracle man of Boston's Hanover Street. He promised his clients a 50% profit in 45 days. ... The essence of his scheme was to buy postal reply coupons in countries with depreciated exchange, redeem them at face value for U. S.
- ^ "In Ponzi We Trust". Smithsonian magazine. December 1998. Retrieved 2008-12-21.
Ponzi himself was probably inspired by the remarkable success of William "520 percent" Miller, a young Brooklyn bookkeeper who in 1899 fleeced gullible investors to the tune of more than $1 million.