March 27, 2005
Sunday

This morning on KRBD I heard an NPR report about a man named PONZI, for whom the PONZI scams are named. It seems that there are many of these type scams going on everywhere. Basically it is like taking money from Peter to pay Paul. The money is never invested, but instead used to pay back earlier investers. In the end the whole scheme collapses, and remaining investors end up losing everything. I remember warnings about this type of scheme in my first accounting class in college. That was back in the days before the college had personal computers or even electronic calculators.

Dave Hanger is correct in warning people about such scams. An investment that claims to earn 2% per day is too good to be true. You might as well send your money to Nigeria in hopes of collecting the $25,000,000 that they need someone to help spend.

Bill Tatsuda
Ketchikan, AK - USA

Related Viewpoint:

PIPS: Ponzi Scam of Interest to FBI by David G. Hanger - Ketchikan, AK - USA

 

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