We often hear the term Ponzi scheme without knowing exactly where it comes from. A Ponzi scheme - named after its inventor in 1920s Boston - is a financial arrangement that attracts customers whose investments are used to pay the originators and first members, thus creating a fraudulent cycle. As long as subscriptions increase, the deception is covered, but as soon as the income from the new victims is not enough to pay back the clients, the system collapses...
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