There have been many famous Ponzi schemes throughout history, and especially in recent years. These fraudulent investments have affected everyone, from the poor elderly to rich Hollywood stars alike. The most disturbing thing about the Ponzi schemes in recent years are that they are carried out by some incredibly brilliant businessmen, who know that their plans aren’t sustainable. If these men focused their energy on legitimate endeavors, they’d probably succeed and not ruin their own lives, as well as the lives of others. Here are ten of the most shocking Ponzi schemes ever. Some you might know and some you may have never heard of, but the all the facts and figures will certainly surprise you.
Charles Ponzi was the man who started it all. In the 1920’s, Ponzi promised investors a whopping 50% return in 45 days, or 100% in 90 days on of all things, international postal coupons, which he never actually purchased. He earned $15 million and became a millionaire in only six months. When Ponzi was caught one year later, investors received a mere $5 million back. He was charged with 86 counts of mail fraud and sentenced to 5 years. During his time in federal prison, he was prosecuted again in Massachusetts, but Ponzi claimed double jeopardy and his case went to the Supreme Court. He was then sentenced to seven to nine years in state prison. After Ponzi was released, he launched another scheme, where he sold real estate that was literally underwater. Not surprisingly, the namesake schemer was jailed yet again, and ultimately died penniless in Brazil, working as a translator.