![\"biggest-ponzi-schemes-in-modern-history-Title\"](\"https:\/\/navesinkinternational.com\/wp-content\/uploads\/2021\/07\/biggest-ponzi-schemes-in-modern-history-Title-253x300.jpg\")
Some things simply sound too good to be true, but when money is involved, our judgement can become clouded.<\/p>\nSome things simply sound too good to be true, but when money is involved, our judgement can become clouded.<\/p>\n
This is often the case with\u00a0Ponzi schemes<\/strong>, a type of financial fraud that lures investors by promising abnormally high returns. Money brought in by new members is used to pay the scheme\u2019s founders, as well as its earlier investors.<\/p>\n The scheme is named after\u00a0Charles Ponzi<\/strong>, an Italian who became infamous in the 1920s for claiming he could double his clients\u2019 money within 90 days. Since then, numerous Ponzi schemes have been orchestrated around the globe.<\/p>\n To help you learn more about these sophisticated crimes, this infographic examines some of the biggest Ponzi schemes in modern history.<\/p>\n <\/p>\n The 1990s saw a number of large Ponzi schemes worth upwards of $500 million.<\/p>\n The scheme was initially very successful, tricking millions of people into making deposits by offering the chance to earn an 800%<\/strong>\u00a0return after three months. This was not sustainable, and Caritas was eventually unable to distribute further winnings.In many cases, these schemes thrived by taking advantage of the unsuspecting public who often lacked any knowledge of investing.\u00a0Caritas<\/strong>, for example, was a Ponzi scheme based in Romania that marketed itself as a \u201cself-help game\u201d for the poor.<\/p>\n Caritas operated for only two years, but its \u201csuccess\u201d was undeniable. In 1993, it was estimated that a\u00a0third of the country\u2019s money<\/a>\u00a0was circulating through the scheme.<\/p>\n <\/p>\n The American public has fallen victim to numerous multi-billion dollar Ponzi schemes since the beginning of the 21st century.<\/p>\n Many of these schemes have made major headlines, but much less is said about the thousands of everyday Americans that were left in financial ruin.<\/p>\n For victims of the\u00a0Madoff Investment Scandal<\/strong>, receiving any form of compensation has been a drawn-out process. In 2018, 10 years after the scheme was uncovered, a court-appointed trustee managed to recover $13 billion by liquidating Madoff\u2019s firm and personal assets.<\/p>\n As\u00a0NPR<\/a>\u00a0reported, investors may recover up to 60 to 70 percent of their initial investment only. For victims who had to delay retirement or drastically alter their lifestyles, this compensation likely provides little solace.<\/p>\n <\/p>\n Running a Ponzi scheme is likely to land you in jail for a long time, at least in the U.S.<\/p>\n In 2009, for example, 71-year-old\u00a0Bernie Madoff<\/strong>\u00a0pled guilty to 11 federal felonies and was sentenced to 150 years in prison. That\u2019s\u00a0135 years longer<\/a>\u00a0than the average U.S. murder conviction.<\/p>\n Outside of the U.S., it\u2019s a much different story. Weaker regulation and enforcement, particularly in developing countries, means a number of schemes are ongoing today.<\/p>\n Sergei Mavrodi<\/strong>, known for running the Russian Ponzi scheme MMM, started a new organization shortly after being released from prison in 2011. Now known as MMM Global, the self-described \u201csocial financial network\u201d has established a base in several Southeast Asian and African countries.<\/p>\n <\/p>\n Credits to Marcus Lu<\/a> and Bhabna Banerjee<\/a> of Visual Capitalist<\/a>, for this nice article. The formatting on their website is way better!\u00a0\u00a0Reproduced in full, with permission.<\/p>\n <\/p>\nPonzi Schemes in the 20th Century<\/h3>\n
![\"Ponzis-20th-century\"](\"https:\/\/navesinkinternational.com\/wp-content\/uploads\/2021\/07\/Ponzis-20th-century.jpg\")
<\/p>\nPonzi Schemes in the 21st Century<\/h3>\n
![\"Ponzis-21st-century\"](\"https:\/\/navesinkinternational.com\/wp-content\/uploads\/2021\/07\/Ponzis-21st-century.jpg\")
<\/p>\nDo the Crime, Pay the Time<\/h3>\n
Source & credits<\/h4>\n