Ponzi

Article 1 Who was Ponzi -- what the heck was his scheme? December 23, 2008 By Ethan Trex Retrieved from http://articles.cnn.com/2008-12-23/ victuals/mf.ponzi.scheme_1_ponzi-scheme-charles-ponzi-investors?_s=PM:LIVING Investigators are trying to figure out whether the fiscal fraud allegedly perpetrated by Bernard L. Madoff was, in fact, the largest Ponzi scheme in history. The alleged scam, which cost investors $50 billion, sounds like a unpolluted Ponzi racket. But what is a Ponzi scheme? And why does it bear this fig? First, you need to know a little bit roughly its namesake, Charles Ponzi. Anyone can work a simple swindle, but you take for to be a special kind of con humans to have your name become synonymous with fraud. Ponzi pulled it off, though. After arriving in the U.S. from Italy in 1903, Ponzi knocked around in a variety of ignorant jobs that usually ended when he got into trouble for theft or cheating customers. A few years later, he locomote to Canada, where he spent a hitch in prison for passing a forged check. When he eventually drifted prickle down to the U.S., he needed a way to nurse some quick cash. Making money via mail Ponzi eventually assemble his way to contain rich quick using a vagary of the postal system.

At the time, it was common for letters overseas to allow an international reply coupon -- a voucher that could be exchanged for minimum postage back to the land from which the letter was sent. Thus, if you sent your buddy in France a letter, you could include a coupon so he could respond. (This practice simmer down exists but is less common.) As exchange and postal rate fluctuated, though, there was an opportunity to make a profit. You only had to purchase postal reply coupons cheaply in some impertinent country, send them back to the U.S. to swap them out for American stamps of a higher value, then sell these stamps. This arrangement was perfectly lawful; it was just cleverly gaming the system. Ponzi started buying and selling... If you want to get a full essay, order it on our website: Orderessay

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