A Ponzi scheme is a fraudulent investing scam that generates returns for earlier investors with money taken from later investors. This is similar to a pyramid scheme in that both are based on using new investors' funds to pay the earlier backers.
These schemes have existed for many years and examples can be found all over the world from Brazil’s Telexfree to Alberto Chang in Chile.
But, why is it called a Ponzi scheme? And how are these con artists able to trick so many people into giving them their money for a reward that doesn’t really exist?
Join us for today’s episode as we discuss the origins of Ponzi schemes, how they function, and how Bernie Madoff successfully pulled off the biggest Ponzi scheme in history.
Read the full transcript here: https://www.dynamicenglish.cl/coffee-with-gringos-podcast-clases-particulares-de-ingles/episode-129-what-is-a-ponzi-scheme
