Ponzi's Original SwindleBy Michelle Singletary
Oh, what a time we live in when fortunes of everyday folks are being wiped away in seconds. And that's just from honest dealings in the stock market.
Then there are those who would labor to relieve people of their hard-earned money with schemes and scams that just amaze.
The latest financial scandal comes courtesy of Bernard L. Madoff, who is accused of orchestrating a $50 billion Ponzi scheme. Madoff had been a prominent member of the securities industry. He was a member of Nasdaq's board of governors and served as chairman of its trading committee.
It would not be surprising to read this of Madoff: "Admirers hailed him as a wizard, critics branded him a fraud. Either way, he arrived on the scene at the perfect moment."
But those are the words Mitchell Zuckoff used to describe the man who set the model for the scheme Madoff is accused of perpetrating: Charles Ponzi. (...)
Then there are those who would labor to relieve people of their hard-earned money with schemes and scams that just amaze.
The latest financial scandal comes courtesy of Bernard L. Madoff, who is accused of orchestrating a $50 billion Ponzi scheme. Madoff had been a prominent member of the securities industry. He was a member of Nasdaq's board of governors and served as chairman of its trading committee.
It would not be surprising to read this of Madoff: "Admirers hailed him as a wizard, critics branded him a fraud. Either way, he arrived on the scene at the perfect moment."
But those are the words Mitchell Zuckoff used to describe the man who set the model for the scheme Madoff is accused of perpetrating: Charles Ponzi. (...)
A Ponzi scheme is just another way to describe the concept of robbing Peter to pay Paul. Only in this case, money from new investors is used to pay off earlier investors. Eventually, the con collapses when not enough new money is coming in to pay off existing investors.
Madoff, who is facing charges of securities fraud, may have beaten Ponzi at his own game by possibly creating the largest Ponzi scheme in history.
Madoff, who is facing charges of securities fraud, may have beaten Ponzi at his own game by possibly creating the largest Ponzi scheme in history.
No comments:
Post a Comment