In the financial world, there will always be people with less than honest intentions. That is only to be expected, primarily because a lot of people want to make money at all costs. Ponzi Schemes are often a great way to attract a lot of money, even though they will always be shut down in the end. The following 21st-century examples show how crafty scammers can get.
Little over 15 years ago, the SEC decided to crack down on a company known as Mutual Benefits Company. Although their business model seemed legit at the time, it turned out a lot of nefarious activity was taking place behind the scenes. On the surface, Peter Lombardi – who ran this Ponzi Scheme – claimed he would use investor money to pay viatical settlements to HIV patients. This worthy cause attracted well over 25,000 investors, all of whom lost their money in the end. Lombardi currently serves a prison sentence for a few more years.