Charles Ponzi's Original Scheme

Charles Ponzi’s original scheme remains the archetype of all Ponzi schemes, promising 50% returns in just 45 days through arbitrage of international postal reply coupons. This scam defrauded investors of $20 million in 1920 dollars, equivalent to over $300 million today. Unlike #4 Allen Stanford’s CD fraud, which targeted wealthy individuals with promise of high-yield CDs, Ponzi’s operation was smaller in scale but more infamous for its sheer audacity. The scheme collapsed after a Boston Globe investigation exposed the impossibility of the returns, leading to Ponzi’s arrest and eventual deportation. With a payout rate slower than the average modern Ponzi, it nonetheless set the template for countless future frauds.