Background information on the new Ponzi scheme

Ponzi scheme is one of the oldest and most common investment frauds. Many illegal pyramid schemes use this trick to amass money. This deception was initiated by a speculative businessman named Charles Ponzi. "Invented". Ponzi schemes are also known in China as "tearing down the east wall to pay for the west wall" and "empty wolf".

Charles Ponzi was an Italian speculator who lived in the 19th and 20th centuries. He immigrated to the United States in 1903. In 1919, he began to plan a conspiracy to deceive people into investing in a company that was actually fictitious. , promising that investors would receive a 40% profit return within three months, and then Ponzi paid the new investors' money as quick profits to the original investors to lure more people into being fooled. Due to the generous returns for early investors, Ponzi successfully attracted 30,000 investors within seven months and received approximately US$15 million in "investments." This conspiracy lasted for a year before people who were dazzled by the benefits came to their senses. Later generations called it a "Ponzi scheme." In August 1920, Ponzi went bankrupt. In 1949, Ponzi died in a charity hall in Brazil.