The Scheme That Gripped a City
In 1920, Charles Ponzi promised Boston investors an astonishing 50% return in 45 days, claiming to exploit exchange rate disparities in international postal reply coupons. Investors flocked to his Securities Exchange Company, trusting in his charm and persuasive confidence.
Millions Made, Millions Lost
Ponzi operated a classic “rob Peter to pay Paul” scheme, paying early investors with funds from new ones. At its height, 40,000 people invested, netting Ponzi $15 million in just eight months. His lavish lifestyle included a mansion, luxury cars, and a bid to control a local bank.
The House of Cards Collapses
Investigations by the Boston Post and federal authorities revealed Ponzi’s scam. When auditors uncovered a $7 million deficit, Ponzi was arrested. Thousands of investors were left with pennies on the dollar, and six banks failed in the aftermath.
Exile and Final Years
After serving prison time, Ponzi was deported to Italy in 1934. He later moved to Brazil, where he struggled with poverty until his death in 1949. Reflecting on his scheme, Ponzi declared it “worth $15 million” for the spectacle alone.
In 1920, Charles Ponzi promised Boston investors an astonishing 50% return in 45 days, claiming to exploit exchange rate disparities in international postal reply coupons. Investors flocked to his Securities Exchange Company, trusting in his charm and persuasive confidence. pic.twitter.com/iiPGoGuciH
— Detective Tiger's Stories (@TigerDetective) November 22, 2024