Author: James Walsh
ISBN: 1563431696:
Publisher: Silver Lake Publishing
In 1903 Charles Ponzi arrived in the USA with the aim of becoming as wealthy as Rockefeller. His modus operandi was based on the principle of robbing Peter to Pay Paul.
James Walsh, in his informative book, You Can`t Cheat An Honest Man: How Ponzi Schemes and Pyramid Frauds Work..and Why They`re More Common Than Ever, traces the origins of the Ponzi Scheme, and explores how and why the scheme works with its different modern day variations.
The first part of the book narrates how, after spending some time in prison for cheque forgery, Ponzi found a creative way to shaft people, that was even legal and possibly sound.
What Ponzi would do was to take advantage of the disparities in the foreign exchange rates pertaining to the postal currency of International Reply coupons. If these coupons could be purchased in countries where they were still hit hard by the after-effects of World War I, he could then redeem them for stamps or cash in the USA, where there value would be as much as 50% higher. Presto! He was onto a brilliant scheme, however, he needed money to expand his enterprise.
In order to raise the needed cash, he promised investors that he would pay them high rates of interest with the profits from his scheme. As is the case today, people were gullible and greedy, and Ponzi had little difficulty in attracting huge sums of money.
However, Ponzi found it difficult to keep meeting his obligations of paying his investors. He resorted to using fresh money to keep his original investors satisfied. And thus began the Ponzi Scheme, that is alive and well today with multiple variations on the original theme.
One such variation is the very popular pyramid sales scheme, where individuals are seduced to become part of a plan for the sale or distribution of goods, services or other property, and wherein they acquire the opportunity to receive monetary compensation, which has little to do with the volume or quantity of goods or services sold but rather on the number of additional persons that could be recruited to join the plan.
The author devotes considerable print to these schemes, as well as making reference to the abundance of jurisprudence that defines and outlaws these plans.
Anyone wishing to protect himself or herself, would do well in thoroughly reading the concluding chapter. It is here where we are given some very sound advice- to be wary of get rich schemes, watch out for deals that offer high yields, if you do not understand the investment, stay away from it, seek professional advice before investing in anything and check out who are the promoters.
Walsh has a sharp eye as to important details, and with his wide use of informative examples, readers receive a comprehensive understanding as to just how wide spread these fraudulent schemes are and how not to be seduced by them.
Norm Goldman is Editor of the book reviewing site, http://www.bookpleasures.com. The site comprises over twenty five international prestigious reviewers who review all genre. Norm is always open to receiving book review inquiries.
Results from a new tool developed by UK based firm,... Read More
Are you setting the right money goals?Most people believe having... Read More
According to Wallace Wattles, in his popular wealth treatise called... Read More
When you purchased your home, you most likely got a... Read More
"Any fool can rich, the wise get wealthy." Chris WidenerGetting... Read More
Have you ever asked yourself what your highest income producing... Read More
Want to be one of the lucky ones on the... Read More
Now is a great time to make it a habit... Read More
Very few people whom I know are familiar with the... Read More
Perhaps the primary message of Rich Dad, Poor Dad is... Read More
When Building Wealth by Russ Whitney was released a few... Read More
Let me ask you a very simple question. Do you... Read More
"The quickest way to wealthThat I've found to be true;Is... Read More
Six out of six people who were asked to list... Read More
This 4,000 acre sale (now a marina and resort town... Read More
Not Enough Money?I believe that most people haven't got enough... Read More
Before I had a lot of money, I was really... Read More
I recently came across startling figures about the average American's... Read More
A surprising number of readers want to know "Can a... Read More
Early in my legal career I represented two young women... Read More
The rewarding of high compensation packages to top executives who... Read More
I counsel a LOT of people about money. I see... Read More
Everyone wants to be wealthy. Only a few actually achieve... Read More
The word 'diversity' is a unique one. It can represent... Read More
Time and time again entrepreneurs are losing out on getting... Read More
I am often amused by the ads and offers I... Read More
If you don't have discipline then walk away from the... Read More
U.S. Supreme Justice Louis D. Brandeis"I live in Alexandria Virginia.... Read More
If you're reading this article, it means you are a... Read More
Vacation season is upon us and it can be tempting... Read More
Bottom line. No exaggeration. No hype. If you want to... Read More
For most of us, the idea of retiring simply on... Read More
We will start the Financial Fitness System with the assumption... Read More
Money is probably the most challenging thing for many people... Read More
I want to share an experience I had in common... Read More
Living on credit is fashionable. Indulging oneself is fashionable. Saving... Read More
AS THE MARKET FLIES HIGHER, GOOD BUYS ARE BECOMING HARDER... Read More
Feel like a lemming lately? Ready to follow the crowd... Read More
Perhaps the primary message of Rich Dad, Poor Dad is... Read More
Masters degree not required...just a little common sense, a $5.00... Read More
What if I told you that reading a book would... Read More
As you sit in traffic, inching along between irate drivers,... Read More
I have a good friend who works in an area... Read More
"Money Doesn't Grow On Trees."Some of us even believe it.... Read More
Like I said, If you are poor and on social... Read More
A surprising number of readers want to know "Can a... Read More
For most of us, the idea of retiring simply on... Read More
What is your attitude towards having wealth? Do you believe... Read More
Have you seen a picture of the Parthenon in Athens,... Read More
Vacation season is upon us and it can be tempting... Read More
We all go to school for about twelve years, kindergarten... Read More
Money can be your servant or it can be your... Read More
Financial planning often gets a bad rap. Part of the... Read More
Building wealth is as simple as saving a little bit... Read More
Loose change that is, if you want a easy way... Read More
Financial independence is having the freedom to support yourself through... Read More
Offshore strategies may or may not be right for you.... Read More
Now is a great time to make it a habit... Read More
It all begins with a simple calculation.You are home on... Read More
According to Wallace Wattles, in his popular wealth treatise called... Read More
So you want to become wealthy? While there is no... Read More
We will start the Financial Fitness System with the assumption... Read More
Many people assume that the offshore world is accessible only... Read More
Estimated Reading Time: 4 minutes -- Envision your life 10... Read More
"My people are destroyed for lack of knowledge." Hosea 4:6... Read More
A mole travels one road, according to the way nature... Read More
Wealth Building |