Ponzi Scam Steve Sorensen
If someone tells you that a business proposition is a Ponzi scheme or scam, you automatically assume that no good can come off it. There are many ways to describe scams, but calling it a Ponzi scam is quite popular. This is because the originator of this idea, Charles Ponzi, became a notorious figure when it comes to embezzlement. Here is Charles Ponzi’s claim to fame. Steve Sorensen.
Charles Ponzi was almost flat broke when he came to America from Italy. After trying several honest jobs, Ponzi landed in prison after forging a bad check, and again for smuggling Italian immigrants to the US.
After moving to Boston and getting married at 1918, Ponzi started buying international reply coupons (IRC) used for replying to overseas mail, and exchanging them for more expensive stamps in other countries. He would hire people overseas to buy IRCs and send it to him in the US where he would exchange them with local stamps which he would then sell. Steve Sorensen
Wanting to earn more, Ponzi looked for potential investors who were looking for a quick buck. He promised 50% in returns in just 45 days, or 100% in 90 days. Ponzi paid past investors with the money he got from newer investors rather than using the profit as payment. At the height of his career, it was told that he made $250,000 a day. Steve Sorensen.
It was only in 1920 that people began suspecting Ponzi of illegal activities. The Boston Post began an inquiry to investigate his returns. The results led to his arrest and was charged with 86 counts of mail fraud, with a debt of over $7 million. For his crimes, he was sent to prison for 14 years. Steve Sorensen