Why are Certain Frauds Called Ponzi Schemes?BondBeebe
John Merchant, CPA, CFE
As you read about unscrupulous people defrauding investors through pyramid schemes, have you ever wondered why they are called Ponzi schemes? The answer is that over 80 years ago a man named Charles Ponzi created a multi-million dollar pyramid scheme that became so famous that it has forever linked his name to this type of fraud. CNN has created an interesting article (follow the link below) that gives readers a look into the life of the man who duped investors with a story that was just too good to be true.
For more information, visit http://www.cnn.com/2008/LIVING/wayoflife/12/23/mf.ponzi.scheme/