Ponzi Scheme

The Ponzi scheme is still going on today. It got it's name from Charles Ponzi, it is basically a plan for you to get rich quickly. The process of this is, you 'think' you are investing your money but really the person is collecting money from new investors and paying early investors back with that money. There is really no investment or return on money. Seeing the early investors double their money makes other people want to invest their money also. The most famous Ponzi scheme is Bernie Madoff, he was sentenced to 150 years in prison from doing this. He was sentenced so much time because he defrauded people 65 billion dollars. This is a very common scheme, it was found around 1919.