Printer Friendly

Conman invented sting 80 years ago.

THE scan that has left some soccer stars cursing their luck is called the Ponzi fraud.

It is named after Charles Ponzi, who made a fortune conning investors in the 1920s.

Those involved in the his pyramid scheme lost millions after being promised a fortune which never turned up.

Ponzi found he could make a huge profit cashing in on a quirk of the international postage system.

He would buy foreign postal coupons for the equivalent of one US cent and buy six one cent stamps with each one.

Anyone could buy $100 worth of stamps in Spain and cash them in for $600 worth of stamps in America or sell them to a third party.

Ponzi's agents would supposedly buy international coupons in countries with weak economies.

He told investors he could double their money in 90 days.

But the Boston Post had a front page story questioning the legitimacy of Ponzi's scheme, in which nearly 40,000 people entrusted $15million.

An investigation found that Ponzi only ever bought about $30 worth of mail coupons.

He was sentenced to five years in prison.

CAPTION(S):

SPOILS: Cash was spent on cars
COPYRIGHT 2003 MGN LTD
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2003 Gale, Cengage Learning. All rights reserved.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:The Mirror (London, England)
Date:Apr 14, 2003
Words:192
Previous Article:Tied up & executed.
Next Article:SOCCER STARS ARE FLEECED IN pounds 300 SCAM; Investors taken to the cleaners by bogus international money scheme.


Related Articles
CHEMICAL ALI CON; Net cheats' sick bid to exploit conflict in Iraq.
DEREK McGOVERN AT LARGE: Cons come in all shapes ... and sizes.
I WAS HUSTLED ..BY THE BEEB; Scotland's top conman claims his script was nicked for TV hit.
'MAN HAD 12 WIVES'.
FAKE SPY WHO STOLE THE LIVES OF WOMEN; Victims in court to see conman get life.
OBITUARY: Henry Bumstead.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters