So, we are now beginning to learn how Charles Ponzi was eventually caught.
As we stated in the last post, Ponzi was making money literally hand-over-fist in overnight deals that seemed to stagger the imagination. Short of finding a gold or platinum mine (which Ponzi obviously did not do) or winning the lottery (which once again did not happen), people naturally become suspicious when someone starts making obscene amounts of money in a hurry.
This was the first "clue" that Charles Ponzi was up to something and, further, it was this marker that first started attracting (unwanted) attention to Ponzi. He clearly could not keep this up forever.
However, the fact that Ponzi was making all sorts of money in a short time was only the first marker. The second marker, and the more telling one, which repeats itself in both pyramid schemes and Ponzi schemes (and as we have seen, there is a difference), is that the fraudster has a hard time describing how he is making the money. This is the "Achilles heel" which strikes pyramid and Ponzi schemes time and again, and Ponzi was no exception.
So, we have the case of Ponzi attracting attention for making so much money so fast and not being able to explain how he did it.
More tommorrow.
As always, have a great and fraud-free day.
http://www.tauskvega.com
----------------->>>>>>>>>>>>>>gene tausk
As we stated in the last post, Ponzi was making money literally hand-over-fist in overnight deals that seemed to stagger the imagination. Short of finding a gold or platinum mine (which Ponzi obviously did not do) or winning the lottery (which once again did not happen), people naturally become suspicious when someone starts making obscene amounts of money in a hurry.
This was the first "clue" that Charles Ponzi was up to something and, further, it was this marker that first started attracting (unwanted) attention to Ponzi. He clearly could not keep this up forever.
However, the fact that Ponzi was making all sorts of money in a short time was only the first marker. The second marker, and the more telling one, which repeats itself in both pyramid schemes and Ponzi schemes (and as we have seen, there is a difference), is that the fraudster has a hard time describing how he is making the money. This is the "Achilles heel" which strikes pyramid and Ponzi schemes time and again, and Ponzi was no exception.
So, we have the case of Ponzi attracting attention for making so much money so fast and not being able to explain how he did it.
More tommorrow.
As always, have a great and fraud-free day.
http://www.tauskvega.com
----------------->>>>>>>>>>>>>>gene tausk
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