What are the prerequisites for the establishment of Ponzi scheme?

Necessary conditions: investors who dream of making a fortune have a high return on capital as their commitment, and their plans are very complicated.

"Ponzi scheme" has become a special term, which means to repay the former "investor" with the money of the later "investor".

Ponzi scheme is the oldest and most common investment fraud and a variant of pyramid scheme. Many illegal pyramid schemes use this trick to collect money. This trick was invented by a speculator named Charles Ponzi. It refers to the cheating behavior of deceiving investors with the promise of high return on capital, and using the investment of post-investors to return to the former investors.

Ponzi scheme originated from a man named Charles Ponzi (1878- 1949), an Italian who immigrated to the United States in 1903. I have worked in various jobs in America, including painting, and I am bent on making a fortune. He served time in Canada for forgery and Atlanta for human smuggling. After more than ten years of American-style dream of making money, Ponzi found that the fastest way to make money was finance, so starting from 19 19, Ponzi came to Boston to hide his history and designed an investment plan to sell to the American public.