What is a Ponzi scheme?
-
What is a Ponzi scheme?
Ponzi schemes are named after Charles Ponzi, an Italian swindler who, in the early 1920s, defrauded hundreds of victims with his deceptive money-making system that ran for over a year. In essence, a Ponzi scheme is a fraudulent investment scam where returns to existing investors are paid from funds contributed by new investors. The flaw…