The financial world is no stranger to scandals and greediness. There’s a mastermind behind every corporate financial scam, and the appetite for wealth and power has given birth to some of the biggest con artists. Some fraudulent corporations and businessmen are able to run their operations for years without anyone questioning their activities. However, one false step or careless move can shine light on a long history of criminal acts.

Charles Ponzi

The grandfather of fraudulent investment schemes, Charles Ponzi’s persuasive and trusting demeanor resulted in the defrauding of thousands of investors during the 1920’s. Ponzi’s investment strategy involved international reply coupons, which were a type of prepaid postage stamp. Investors jumped at the opportunity to invest in these coupons and receive a massive return on their money within a relatively short period. The money collected from investors made Ponzi a millionaire in only a few months, and investors immediately began to earn profits off their initial investments.read more;http://eyesawmagazine..com/2013/11/these-are-boss-when-it-comes-to.html
However, these funds didn’t come from actual profits. Instead, Ponzi paid investors with a percentage of newly invested funds, while keeping the majority of the money for himself. Investors became suspicious of his activity and this triggered an audit of his books. The scam was uncovered and Ponzi reportedly took in 20 million dollars with his operation.