frankie Magazine

a brief history of the ponzi scheme

How would you like to make money – fast? I thought you might. See, I’ve discovered this amazing new investment opportunity, and it pays 30 per cent annual returns! How? Don’t worry about the how. The how is unimportant. I could show you all these charts and diagrams and things, but all you need to know is that it works. And I can prove it – look, I’m standing in front of a Lamborghini! If that doesn’t scream ‘legitimate business opportunity’, I don’t know what does.

Welcome to the lucrative world of Ponzi schemes, where the money flows like water… until it doesn’t.

Perhaps the most infamous case is that of Charles Ponzi – the guy after whom the scheme was named. In the early

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