We hope for your sake that you never got stung by a Ponzi Scheme…If you did, one of these guys was most likely the culprit…
The first question is, what is a Ponzi Scheme? The answer is that it is a fraudulent investment operation whereby investors get paid dividends from other people’s investments. In short, it means that ultimately all investors in such a scheme end up losing all their money, apart from the guy sitting at the top of the pile, of course…
Named after the man who first did such a scam, Charles Ponzi, who was the one who made this form of scamming popular, all the way back in the 1920s.
Interestingly enough, the first Ponzi scheme involved the arbitrage of international reply coupons for postage stamps. This made Charles Ponzi a bucket load of cash at the time, while his investors lost everything.