Encyclopedia Ponzi scheme

Ponzi scheme is the name of investment fraud in the financial field and the originator of pyramid schemes. This trick is used by many illegal pyramid schemes to collect money. This trick was invented by a speculator named Charles Ponzi. Ponzi scheme is also called "robbing Peter to pay Paul" and "empty gloves and white wolves" in China. In short, it is to use the money of new investors to pay interest and short-term returns to old investors, so as to create the illusion of making money and then defraud more investment.

Charles Ponzi was an Italian-born speculator who lived in the 20th century. 1903 immigrated to the United States. 19 19, he began to plot. These swindlers invested in a non-existent enterprise, promising investors a 40% profit return within three months. Then, the cunning Ponzi put the new one. Ponzi successfully attracted 30,000 investors within 7 months due to the rich returns of the early investors. This conspiracy lasted for a year, and only those who were carried away by interests woke up, and later people called it "Ponzi scheme".

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