Ponzi Scheme New York

Ponzi scheme is named after the man who created it, Charles Ponzi, who is known as one of the uglier side of accounting. 

 

This scheme is also known as pyramid scheme, in which a salesman who has a very magnetic personality target investors and ask them to loan money on huge interest basis. As the result more investors participate in it, and loan money collected from investors are given to initial investors. What really is happening is that they tricking many people to join in this plan. This works as long as new investors are lining up to join the salesman. 

 

This scheme was started by Charles Ponzi back in early 1900’s, in order to take advantage over eager American pubic that were willing to give large loans for exorbitant interest. Charles Ponzi and his Boston based company has target many people and collected a sum $10 million by selling promissory notes that claimed to pay 50% profit in 45 days, but later on the scheme was exposed and Boston bank collapsed and people lost most of their money.

 

After the exposed of this scheme too, it didn’t stop as it was reliable one, to scam more and more people. Against this scheme Ponzi was eventually convicted of fraud in both federal and state court and imprisoned for several years. 

 

Ponzi Scheme In New York is considered to be the ugliest part of today’s world. It tells us that how lying can destroy personal relationships, finances and even a country. The only way to stop this is by making tougher SEC regulations on financial reports. The SEC needs to focus more on the substance of financial report rather than its appearance. Although it’s not possible for any country to stop this schemes completely but hopefully the actions that are taken on such people against fraud can set an example for other people. https://www.chicago-lawoffice.net/Practice-Areas/Business-Fraud-in-New-York.shtml