The Ponzi Scheme Research Paper

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Life is simply a game, a game played by billions of people every day. Just like any other game some players play by the rules and others choose not to. Some players go to work every day to earn money whereas some cheat and find alternatives to working hard to become wealthy. Majority of these cheaters play money making schemes on those who have worked hard and countless hours for their money. There have been many people affected by countless amounts of schemes in the past. A conspiracy in particular that has destroyed the lives of hundreds of thousands is a scheme known as the Ponzi scheme. Named after Charlie Ponzi, it was first used in the year of 1919 by Ponzi himself. Charlie, who is now nicknamed the father of the Ponzi scheme, was thirty-seven at the time and was successful in…show more content…
So what is the Ponzi scheme? (Article) The Ponzi scheme today is seen as fraudulent investment operation. It all starts with a central operator who promises investors incredible returns that cannot be found in the market today, convincing the investor that they use secret trading techniques that work. Early investors are eventually given the promised returns which are paid for with the investment of later investors. In reality there is no actual business and no profit produced, the whole operation consist of only invested money minus a cut for the man or women running the scam. Early investors who are unaware of the scam are very satisfied with their returns and encourage friends and family to invest with the Ponzi operator, the word spreads like wildfire. It is for that reason that the scammer does not need to advertise. In the case of Charlie Ponzi, he was able to promise investors at the time a shocking return of 50 percent in only 90 days. He told these investors that
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