Business

Ponzi Scheme

With the arrest of Bernard Madoff for defrauding investors of billions of dollars, everyone’s searching for a definition of a Ponzi scheme.

Did you know the scam is actually named for a man, Charles Ponzi, who made millions on it back in the 1920’s? A basic definition: An investment scam based on paying early investors with money from later ones, all the while skimming some off for yourself, and eventually everything falls apart.

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