Stocks & Commodities V. 27:6 (98, 97): At The Close by L.A. Little

Stocks & Commodities V. 27:6 (98, 97): At The Close by L.A. Little
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At The Close by L.A. Little

The name of Charles Ponzi, the Boston financier and swindler, has come to symbolize the idea of fraudulent investment operations where investors are paid handsome returns by subsequent investors rather than from profits. This activity is known elsewhere as illegal pyramiding, but whatever the name, a Ponzi scheme is where the victim of the scheme is forever separated from his or her money by underhanded means. The victimís greed gets the best of them and the swindler takes advantage.


With so many large-scale Ponzi schemes coming to light as a result of these turbulent times (with Bernard Madoff and R. Allen Stanford recent names in the headlines), it is a good time to consider how you can easily avoid being victimized by this type of investment fraud. It is not that difficult.

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