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Ponzi Schemes facts

While investigating facts about Ponzi Schemes In Nigeria and Ponzi Schemes In South Africa, I found out little known, but curios details like:

Buddy Fletcher, husband of Reddit CEO Ellen Pao, is being described as being the operator of Ponzi scheme after his now bankrupt firm diverted money for their own use and, according to the Chapter 11 trustee, committed fraud against investors. Three Louisiana pension funds lost $144 million.

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One of Bernie Madoff's ponzi scheme victims was a professor that wrote a book on gullibility and scams.

What's the difference between ponzi and pyramid schemes?

In my opinion, it is useful to put together a list of the most interesting details from trusted sources that I've come across. Here are 50 of the best facts about Ponzi Schemes In Kenya and Ponzi Schemes In Nigeria 2020 I managed to collect.

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  1. The longest prison sentence ever received was 141,078 years, handed out to Thai national Chamoy Thipyaso for her part in a Ponzi scheme that defrauded 16,000 investors.

  2. After Albanian citizens lost ~$1.2 billion (~$400 per capita) to Ponzi schemes in 1997, some of the losers started protesting against the government. The protests ultimately turned into a 6+ month civil war that toppled the government and killed 2000 to 3800 people.

  3. Elie Wiesel, a Nobel Peace Prize winner and author of the Holocaust memoir "Night", started the Elie Wiesel Foundation For Humanity. The charity lost nearly $16 million in the Madoff Ponzi Scheme. Wiesel and his wife also lost their entire personal life savings.

  4. The man that founded the Backstreet Boys is currently serving a 25-year prison sentence for perpetrating one of the largest and longest-running Ponzi schemes in American history, cheating investors out of $300 million.

  5. Billionaire Boys Club was a Ponzi scheme started in 1983 by young boys from rich families. Money contributed by investors was spent supporting lavish lifestyles. When funds ran short in 1984 club members turned to murder & at least two people were killed as they tried to raise more money

  6. Charles Ponzi, the creator of the Ponzi scheme, received Christmas cards from some of his investors and requests to invest money while he was in prison

  7. The man responsible for creating both NSYNC and the Backstreet Boys is serving 25 years in jail for fraud and running one of the largest Ponzi schemes in history

  8. The end of a Ponzi scheme led to a Civil War in Albania where more than half the population had participated in various schemes.

  9. The government of Albania collapsed in 1997 due to a massive Ponzi scheme which consumed the entire economy, leading to 6 months of anarchy with disgruntled citizens, army deserters, and even mafia syndicates seizing control of much of the country

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The SEC was repeatedly and explicitly warned about the Madoff Ponzi scheme for 10 years by a forensic accountant. Over and over again they ignored the warnings and did nothing.

Monroe Beachy was an Amish investment banker who ran a Ponzi scheme and defrauded almost $17 million. - source

By the age of 22, California man Barry Minkow had founded a cleaning company, taken it public, and watched it collapse as its most lucrative division was outed as a Ponzi scheme.

The biggest beneficiary of the Madoff ponzi scheme was not Bernie Madoff or his children, but a Jeffry Picower, an early investor, who made more than $7.2 billion - source

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The origin of the phrase “Ponzi Scheme” comes from a real man named Charles Ponzi. He arrived in the USA w/ $2.50, and in 1920 had a scheme worth $20M (225M adjusted for inflation)

Actors such as Kevin Bacon and John Malkovich lost millions of dollars from investing in the Bernie Madoff ponzi scheme

Harry Markopolous provided the SEC with evidence of a $50 Billion Ponzi Scheme being run by a wall street banker for 10 years before he was finally caught.

The name ponzi scheme originated with Charles Ponzi, who promised 50% returns on investments in only 90 days.

Pigeon King International. A Ponzi scheme in Ontario where a man sold breeding pigeons to farmers, promising to purchase the offspring for racing or for the pigeon meat.

Elie Wiesel invested a significant portion of his money into Bernie Madoff's ponzi scheme. He lost $15.2 million as a result.

Interesting facts about ponzi schemes

Ulysses S. Grant was unwittingly a participant in a Ponzi scheme. He later was humiliated when he became a victim of of the same investment scandal.

MMM, one of the largest Ponzi schemes in history. Born in Russia 1992 it was busted by police in 1995. With the bust the share value fell from 115k Rubles to 1k and between 5-10 million people lost their saving. MMM resulted with between 50 million to 1.5 Billion USD in debt to the investors

A Chinese ponzi scheme that generated ~$2 billion dollars in revenue based on the buying and selling of Ants.

When one of the largest Ponzi schemes in history appealed a sentance that effectively ended their USA operations, they had the appeal rejected because they failed to pay a $20 fee

The CEO of Reddit is married to a gay man accused of being involved in a ponzi scheme

There was a 19th-Century women's only (by women, for women) Ponzi Scheme called The Ladies' Deposit

The term "Ponzi scheme" was coined in the 1920s after Charles Ponzi, whose scheme ran a year before collapsing and costing investors $20 million

A 2017 report revealed Kars4Kids had invested in a Ponzi Scheme and lost $9.27 million dollars from real estate projects controlled by the second cousin of the Kars4Kids CEO. Also, their "free vacations" just recruited people for timeshare presentations.

Charles Ponzi's scheme involved arbitrage of postal International Reply Coupons (IRCs).

A Canadian Ponzi scheme revolving around pigeons. The Pigeon King.

Nba player Mike Miller from the Cleveland cavaliers lost $1.7 Million dollars in a Ponzi Scheme...

A Mega-Church refused to return $300K donated by a Ponzi-Scheme Mastermind requested by Feds to help pay back victims of the scheme

In the world of Cryptocurrency there is a coin that openly admits to being a ponzi scheme and actively encourages potential investors to not waste their money. It has over 800,000$ currently invested in it.

In 1989, Chamoy Thipyaso was sentenced to 141,078 years in prison for a Ponzi scheme that affected 16,231 Thai people and stole the equivalent of around $200 Million; however due to Thailand law, a person could only serve a maximum of 20 years for Fraud. She spent only 8 years in prison.

In the Bernard Madoff Ponzi Scheme, Madoff claimed his fund's total value is $64 billion. It was designed by Madoff to keep investors investing. The actual money victims have invested was $36 billion. $14.328 billion was recovered, of which $12.936 billion was distributed to victims.

The hedge fund of Alphonse Fletcher Jr. has been described by a court-appointed bankruptcy trustee as having elements of a Ponzi scheme.

Controversial Youtube livestreamer, Ice Poseidon, is running a ponzi scheme with a 2 million dollar investment he recently secured for his start up, after he exposed himself live in front of 10k viewers.

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