Definition of a Ponzi Scheme
Looks like the online crooks who start Ponzi schemes are getting their just rewards.
Lets look back in time to see when and how "Ponzi" got it's name and why it is linked
to "Scam" programs.
June, 1920
Incredibly 30,000 people paid over $9,500,000 to man named Charles Ponzi and you
can read an excellent article on how he managed to achieve this, after starting the scam
in December of 1919, by clicking on this link: The Origin Of "Ponzi" .
As explained in the article, Charles' problems began when the inflow of cash slowed and he
couldn't pay his original and older investors. The house of cards he built, collapsed.
Just imagine...he had so much money, he had it piled up everywhere but he was eventually
arrested and imprisoned. On top of that, his investors blamed the Government for stepping in
and ruining their chances of Ponzi coming up with the funds they honestly thought he would
earn for them.
This is a guy that had them "literally"eating out of his pocket.
July, 2008
Today people are still being lured by Ponzi type programs. Accused of running Ponzi programs,
Lou Pearlman has to repay 300 million dollars from prison! Another great read at this link:
‘N Sync creator ordered to repay scam victims $300 million
I ventured into the HYIP scene for a couple of months and that was enough for me. I saw
my small investment grow quickly and asked for payout as soon as it reached the minimum
level but never seen a dime. About 90% of these "Ponzi" schemes close up shop within two
or three months. That's it! Enough of that! Deleted all those bookmarked sites!
Likewise, similar illegal pyramid or “Ponzi” schemes are operated in every type of level online.
Beware of programs that offer you unbelievable investments on your money because they are
here to day and gone tomorrow. The only way they can operate is to bring in unaware people
to invest so they can pay the original members of the program. Doomed from the start.
It is a great asset to know and keep current with some experienced Bloggers who are involved
in online ventures that a man like Charles Ponzi "could" manipulate. Interacting with other
Bloggers and members of programs they are the first to raise the alarm and warn readers of
any misdoings. Also, spending some time researching Forums and "Scam" reviews can be good
tools to investigate possible Ponzi sites.
Lets look back in time to see when and how "Ponzi" got it's name and why it is linked
to "Scam" programs.
June, 1920
Incredibly 30,000 people paid over $9,500,000 to man named Charles Ponzi and you
can read an excellent article on how he managed to achieve this, after starting the scam
in December of 1919, by clicking on this link: The Origin Of "Ponzi" .
As explained in the article, Charles' problems began when the inflow of cash slowed and he
couldn't pay his original and older investors. The house of cards he built, collapsed.
Just imagine...he had so much money, he had it piled up everywhere but he was eventually
arrested and imprisoned. On top of that, his investors blamed the Government for stepping in
and ruining their chances of Ponzi coming up with the funds they honestly thought he would
earn for them.
This is a guy that had them "literally"eating out of his pocket.
July, 2008
Today people are still being lured by Ponzi type programs. Accused of running Ponzi programs,
Lou Pearlman has to repay 300 million dollars from prison! Another great read at this link:
‘N Sync creator ordered to repay scam victims $300 million
I ventured into the HYIP scene for a couple of months and that was enough for me. I saw
my small investment grow quickly and asked for payout as soon as it reached the minimum
level but never seen a dime. About 90% of these "Ponzi" schemes close up shop within two
or three months. That's it! Enough of that! Deleted all those bookmarked sites!
Likewise, similar illegal pyramid or “Ponzi” schemes are operated in every type of level online.
Beware of programs that offer you unbelievable investments on your money because they are
here to day and gone tomorrow. The only way they can operate is to bring in unaware people
to invest so they can pay the original members of the program. Doomed from the start.
It is a great asset to know and keep current with some experienced Bloggers who are involved
in online ventures that a man like Charles Ponzi "could" manipulate. Interacting with other
Bloggers and members of programs they are the first to raise the alarm and warn readers of
any misdoings. Also, spending some time researching Forums and "Scam" reviews can be good
tools to investigate possible Ponzi sites.
The biggest problem in my opinion is overreaction. Ponzi is so well known that many online do-gooders use the term so losely that they damage perfectly legal programs just because they see them as a scheme.
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