con man in American history. He collected $9.8 million from over ten thousand people in just 8 months.
According to generally accepted accounting procedures, any Ponzi scheme is insolvent from the moment it starts and it becomes increasingly insolvent each day that it is in operation.
The basis of a Ponzi scheme is investment. The Ponzi scheme operator typically represents that they have some sort of system that is either incredibly complex, or a proprietary secret. The purported system makes it possible pay incredibly high rates of return very quickly.
A Ponzi scheme will not have a decline and then a fall. A Ponzi scheme is usually very successful right up until its collapse. All of the investors are making money, everyone who wants their money gets paid, and everyone is happy until the regulators discover and shut down the Ponzi scheme.
The Ponzi scheme is still alive and well. There have been numerous reports of Ponzi schemes popping up. People are still victimized by get-rich-quick schemes. Investing money requires more research to avoid being swindled by a Ponzi scheme.
As recently as 2005, a man that ran a gigantic Ponzi scheme in California was sentenced to twenty years in prison. The court system does not look favorably on thieves. The man that ran the Ponzi scheme was ordered to pay over $145 million to victims.
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