Ponzi – The Man and the Scheme

Posted on Nov 18, 2014

By Pete Miller, CPA, CFE

A common fraud scheme that typically makes the news is known as a Ponzi scheme.  Have you ever wondered why a Ponzi scheme has that name?  Did you know that it was named after a famous fraudster named Charles Ponzi?

The family of schemes known as Ponzi schemes has lasted long after Charles Ponzi departed this world, yet it was born from a business model that wouldn’t make any sense at all today.

In recognition of International Fraud Awareness Week, which is going on right now, I thought it would be interesting to share some background on one of fraud’s forefathers. This article was published in the ACFE’s Fraud Magazine back in the summer of 2011. In addition to explaining Ponzi the man and his scheme, it provides considerable details of the man who brought Ponzi down – William McMasters.  Enjoy!

© Clark Nuber PS and Focus on Fraud, 2014. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Clark Nuber PS and Focus on Fraud with appropriate and specific direction to the original content.

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