Charles Ponzi and the historic financial fraud scheme

Charles Ponzi, an Italian immigrant, orchestrated one of history's most infamous financial frauds in 1920. Operating out of Boston, Ponzi promised investors returns of 50% within 45 days, eventually accumulating approximately $15 million in just eight months.

The scheme was eventually exposed as a fraud where returns were not generated through actual investments, but rather through the funds provided by new investors. Ponzi, born in Parma, Italy, had previously faced imprisonment in both Canada and the United States for forgery and illegal activities before launching his massive investment scam based on international postal coupons.