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You might have heard about “ponzi schemes,” where people invest in something that doesn’t really exist, and their money gets paid to earlier investors.
This idea came from Charles Ponzi, an Italian guy who tricked people in the early 1900s. Let’s find out who he was, how he fooled people, and what happened because of it.
How Charles Ponzi Rise From Nothing to Big Dreams
Charles Ponzi was born in Italy in 1882. His family used to have money, but they became poor. He went to a university but ran out of money and never got a degree. So, he moved to the US in 1903 and wanted to get rich.
A Clever Idea By Charles Ponzi
One day in 1919, Ponzi got a special paper in the mail. This paper could help people save money on international mail. He thought he could use it to make money. He started a business where he convinced friends to give him money, promising to double it in a few months.
Charles Ponzi Getting into Trouble
People started giving Ponzi lots of money because he seemed friendly and smart. But after a while, they realized something was wrong. Ponzi’s plan didn’t make sense. Some people even sued him. A newspaper wrote about him, and things got worse.
The Downfall of Charles Ponzi
Ponzi’s plan collapsed because the rules changed and he got caught. People wanted their money back, but he couldn’t give it to them. He got in trouble with the law and went to jail. He had to pay for what he did.
What Happened to Charles Ponzi After the Trouble?
Ponzi spent many years in jail and had a hard time. He got out and went back to Italy, where he was poor. He died in 1949. But his idea didn’t die with him.
The impact of Charles Ponzi’s idea in the society till date
Even now, people copy Ponzi’s idea. Yahoo as the least of them all, whereby they promise big profits to get people’s money, but it’s all a trick. There are lots of these schemes today, and they have cause a lot of harm to the society.
Charles Ponzi was a guy who thought he could trick people into giving him money. He became famous for his trick, and even though he died a long time ago, his idea is still around. We should be careful and not fall for these kinds of tricks.