before the stock market crashed. Convicted, he served about 13 years in federal prison (Jackson, D., 1993).
A Ponzi scheme generally begins by word of mouth. A promoter starts with friends and relatives, then their friends and relatives. Every month the initial investors receive checks with the promised rate of return. They show the checks to others, urging them to "get in on this and make some money" (Jackson, D., 1993). Ponzi scheme organizers often solicit new investors by promising to invest…
Words 9514 - Pages 39
