ponzi scheme

The previous few decades have seen a variety of fraudulent financial schemes emerge due to unstable economic conditions. The Ponzi scheme is one such fraud plan. Charles Ponzi, who in 1920 employed a method known as the "confidence trick," is the inspiration behind the Ponzi scheme. He promised investors their money would quadruple in 90 days after purchasing foreign postal coupons.  The initial appearance of the investment was optimistic because he had given all of the early investors their promised profits. Then, however, Charles' Ponzi scheme attracted investors, which caused his debts to expand rapidly. His obligations increased significantly due…