History of Monetary Fraud

Brief Description of Charles Ponzi (March 3, 1882 – January 18, 1949) was an Italian immigrant to the United States who became one of the greatest swindlers in American history. His aliases include Charles Ponei, Charles P. Bianchi, Carl and Carlo. The term "Ponzi scheme" is a widely known description of any scam that relies on a "pyramid" of "investors" who contribute money to a fraudulent program. He promised clients a 50% profit within 45 days, or 100% profit within 90 days, by buying discounted postal reply coupons in other countries and redeem them at face value in the United States as a form of arbitrage. Ponzi was probably inspired by the scheme of William Miller, a Brooklyn bookkeeper who in 1899 used the same pyramid scheme to take in $1 million.

Charles Ponzi created what is now called the ponzi scheme (New money in old money out).