Gregor MacGregor's Poyais scheme is one of the most brazen frauds in history. He manufactured a country from thin air and the people that believe him suffer tragic consequences.
This is a sad story.
In 1821, a strikingly handsome man swept into London with an incredible news. He was Gregor MacGregor, a Scottish soldier who had risen to the rank of general in the wars for Venezuelan independence. He declared himself "His Highness Gregor I, Cazique (Prince) of the Independent State of Poyais," a lush Central American utopia he claimed to rule.
MacGregor painted an Edenic picture. Poyais was supposedly located on the Mosquito Coast, covering eight million acres (larger than Wales) with a mild climate, fertile soil, and rivers laden with gold nuggets. He claimed there was a thriving capital, the port of St. Joseph, complete with public buildings, a cathedral, and established British settlers.
To back his story, he fabricated official-looking land grants, maps, a national flag, and a 350-page guidebook detailing weather patterns, vegetation, and tax laws. He even designed Poyaisian banknotes and uniforms for the nonexistent Poyaisian military.
The objetive of this man was exploit the post-Napoleonic economic climate where risky foreign bonds were all the rage. He set up a land office in London, selling plots for as little as 4 shillings an acre. He also floated two massive £200,000 bond issues through a London bank, promising high returns. This generated a modern equivalent of billions of pounds.
With all settled, in the autumn of 1822, around 250 mostly poor Scottish emigrants set sail. They embarked on a journey to a country that did not exist. Hope can sometimes be exploited and this time it was. Upon landing, they found no port, no town, no roads, no cathedral—just a desolate, uninhabitable jungle swamp.
Stranded, they were ravaged by malaria, yellow fever, and starvation. Within months, over 180 of the 250 settlers had died. Rescue eventually came from a British ship out of Belize, but only about 50 people returned to Britain alive.
MacGregor was arrested but acquitted and then fled to Paris where attempted the scam again and was arrested but acquitted again. He go back to Venezuela and die in this country in 1845 without ever having been in prison for his crimes.
More often than not, the bad guys get away with it.
Is easy to get scammed, especially if you are in dire need. Because in that state hope is the only thing you have.To protect yourself from a Poyais, always verify independently, be wary of guaranteed returns or paradise claims, take your time, and trust your gut.
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