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Charles Ponzi, the namesake of the scheme, in 1920. A Ponzi scheme (/ ˈ p ɒ n z i /, Italian:) is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. [1]
Some of the most complex (and potentially most lucrative) forms of embezzlement involve Ponzi-like financial schemes where high returns to early investors are paid out of funds received from later investors duped into believing they are themselves receiving entry into a high-return investment scheme.
The Madoff investment scandal was a major case of stock and securities fraud discovered in late 2008. [1] In December of that year, Bernie Madoff, the former Nasdaq chairman and founder of the Wall Street firm Bernard L. Madoff Investment Securities LLC, admitted that the wealth management arm of his business was an elaborate multi-billion-dollar Ponzi scheme.
Madoff orchestrated his colossal $20 billion fraud over many years until his arrest in 2008. The scheme, which had run through his wealth management firm, unraveled during the global financial crisis.
The largest instance of securities fraud committed by an individual ever is a Ponzi scheme operated by former NASDAQ chairman Bernard Madoff, which caused up to an estimated $64.8 billion in losses depending on which method is used to calculate the losses prior to its collapse. [31] [32]
Those who invested with former Copley basketball coach Mark Dente’s real estate company — in what has been deemed a Ponzi scheme — are being divided into two groups: net winners and net losers.
"Ponzi Super Nova", an episode of the podcast Radiolab released February 10, 2017, in which Madoff was interviewed over prison phone. [207] Chevelle's song "Face to the Floor", as described by the band, was a "pissed off, angry" song about people who got taken by the Ponzi scheme that Bernie Madoff had for all those years." [208]
The ultimate victim of a real estate Ponzi scheme mastermind, who allegedly defrauded millions of dollars from his clients, could turn out to be his own wife of 38 years. The lesson for homeowners ...