The Ponzi Scheme and Mental Illness Essay

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The Ponzi Scheme and Mental Illness

December 26 1919 Charles Ponzi borrowed $200 to buy some office furniture. By January 1920 he then began telling the people of Boston how he could buy stamps and sell them overseas and give them a 50% return on their investment in 45 days and 100% return in just 90 days. The people came so fast he was able to pay returns of 100% in just 45 days. The word spread quickly and more investors came. Soon Charles had two offices and hired people to take orders for stamps. Shortly thereafter Charles was taking in as much as $1 million a week.
Charles was quoted as saying. "A huge line of investors, four abreast, stretched from the City Hall Annex . . . all the way to my office! . . . Hope and greed could
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You might think the investors that bailed out early made out but all of their profits had to be returned to bankruptcy court to pay back the millions still owed. This still wasn’t enough to pay back all the money owed. Investors only received back $.37 for every dollar they invested. (SSA, 2008) A far cry from 50% profit. August 1924 Ponzi was released from jail but within months he was back in jail on indictments that the state didn’t get him on before. He was sentenced to nine years in prison but remained free during his appeal. (Zuckoff, 2005)
Even this didn’t stop Ponzi. During this time Ponzi and his wife moved to Jacksonville Florida and began a new scam. This time it was land. He borrowed money from friends. Opened a company called Chatpon Land Syndicate. Which play on the name Charles Ponzi. He began to buy up cheap land in Jacksonville. Most of it swampland, and began selling of lots for nearly 500% profit. (Zuckoff, 2005) When Florida found out who he was Massachusetts and Florida teamed up to shut him down again. He was then sentenced to one year in jail for violating securities laws.
Ponzi faked is death and sneaked on to a ship as a dish washer. He eventually told someone who he was and was captured several months later in Galveston Texas. Ponzi served 9 years in prison and was deported to Italy October 7 1934 with only $70 in his pocket.
Ponzi died 17 January 1949 in Brazil. He had $75 to his name. (Zuckoff, 2005)
In 1957

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