It might be the most un-celebrated centennial you’ve never heard of – the year that the Ponzi Scheme turns 100.
Since the term was ‘coined’ in 1920 when Charles Ponzi defrauded thousands of Americans, billions of dollars have been scammed from innocent people through the fraudulent investment scheme. By promising large returns, the schemer gathers money from new investors to pay old
ones, thus creating a cycle of large gains for the main perpetrator.
To mark the anniversary of the deceptive investment fraud, comparethemarket.com.au created an infographic that counts down the 10 largest Ponzi Schemes by the amount of money scammed.
The largest Ponzi Scheme on the list involves Bernie Madoff swindling $65 billion from thousands of investors, which makes up most of the roughly $80 billion total that was accumulated across all ten of the largest schemes. During the 90s and early 00s, Madoff would accept money from private investors and deposit it into a private bank account. When an investor asked for their money, he would withdraw it from the same account having never made any legitimate investments.
Madoff is currently serving a 150-year sentence in a North Carolina prison.
The anniversary comes at a time where people’s fear of Ponzi Schemes is higher than it has been in the past. Following 2018 where statistics indicate the lowest number of Ponzi Schemes in a decade (47 schemes), 2019 saw a sudden surge where figures were the largest within that same decade (60 schemes).
You can find the list of the top 10 Ponzi Schemes of all time at comparethemarket.com.au, where you’ll also learn how Ponzi Schemes work in depth and how to avoid getting caught up in one.
Source: https://www.comparethemarket.com.au/the-ponzi-scheme-turns-100/
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