Ponzi Schemes, Have We Lost Everything?

by Standtall | November 4, 2009 at 02:39 pm

173 views | 15 Recommendations | 2 comments

Discussions are taking place all over the world and heavily in the news medium about Ponzi Schemes.

I was recently asked by an individual what is meant by this term Ponzi Scheme?

The best way I came up with was to define Ponzi Scheme is by legal definition.

The legal definition of Ponzi scheme is: “A fraudulent investment scheme in which money contributed by later investors generates artificially high dividends for the original investors, whose example attracts even larger investments. • Money from the new investors is used directly to repay or pay interest to earlier investors, usu. without any operation or revenue-producing activity other than the continual raising of new funds. This scheme takes its name from Charles Ponzi, who in the late 1920s was convicted for fraudulent schemes he conducted in Boston.” Black's Law Dictionary, Bryan A. Garner, Editor in Chief. (8th ed. 2004)

So many citizens in America have lost such huge sums of money that a website http://ponzi-victims.ning.com/ has strictly dedicated itself to the victims of Ponzi Schemes. Perpetrators have taken away entire fortunes, retirements and forced many of their victims to the brink of suicide.

This web site is done in dedication and presentation of information about fraudulent "Ponzi" investment schemes, including those foisted on the investing public recently by Tom Petters and Bernard Madoff.

...This is a lie....because Madoff did do business with those companies to include Citigroup and the gangsters who helped Enron screw thousands of people in the US.. Bernie Madoff was in on the call and put derivative trading that went on just prior to 911... His sons turned him in for protection from people against the Bush Syndicate, fearing they will kill him....when we know Lehman Brothers went bust and the Dominio's began to crash. Lehman Brothers also had dealings with Citigroup. Paulson, Madoff, Anschutz, and Weill are all connected to the Enron...catalyst to 911... Bernie is but being housed for protection....not being punished for a ponzi scheme...which we already have known for years that Wall Street is nothing but the Ponzi Pond in the extortion trading markets for the Rich and Insane. The lie: There were, of course, people on Wall Street who suspected, as did Markopolos, that the Madoff deal was not on the up and up. Suspicions were so strong that their companies refused to do any business with Madoff. I believe Goldman Sachs and J.P. Morgan were two of them. In his 2005 memo to the SEC, Markopolos gave the SEC the names of four highly placed Wall Street executives it should speak with -- one being at Goldman and a second at Citigroup -- because these executives were convinced, based on their expertise in and experience with derivatives, that Madoff’s returns could not be for real. There were large institutions, and major-league-rich investors, including Arab investors, which hired due diligence firms to investigate whether the institutions or investors should invest with Madoff, and the due diligence firms, after looking into the situation, cautioned against investing with him because of red flags like some of those mentioned by Markopolos. I say shut down Wall Street. The Rev.....

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Ponzi Schemes, Have We Lost Everything?

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