Why they called a Ponzi Scheme? Who was Ponzi? The Ponzi Scheme is the type of fraudulent investment that the investors will pay there money with his own saving, or pay a money by the subsequent investors rather than from the actual profit earned. It is just like a pyramid scheme wherein you are recruiting new participants just to joined the investment to make money. The hallmark of these schemes is the promise of sky-high returns in a short period of time for doing nothing other than handing over your money and getting others to do the same.

Now the Ponzi Scheme means A fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for older investors by acquiring new investors. This scam actually yields the promised returns to earlier investors, as long as there are more new investors. These schemes usually collapse on themselves when the new investments stop. A Ponzi scheme is similar to a pyramid scheme in that both are based on using new investors' funds to pay the earlier backers. One difference between the two schemes is that the Ponzi mastermind gathers all relevant funds from new investors and then distributes them. Pyramid schemes, on the other hand, allow each investor to directly benefit depending on how many new investors are recruited. In this case, the person on the top of the pyramid does not at any point have access to all the money in the system.

Charles Ponzi a.k.a "Charles Ponie, Charles P. Bianchi, Carl and Carlo" was born on March 3, 1982 in Lugo, Italy. He was one of the greatest swindlers in American history, the term Ponzi is widely known as scam that any persons pays early investors returns from investments of later investors. It is being promise that the client receive a 50% profit within 45 days. or 100% profit within 90 days, upon buying a discounted posted reply coupons in other countries and redeeming them at face value in the United States as a form of arbitrage. It was inspired by the scheme  of  William  F.  Miller  a Brooklyn  bookkeeper  who used the same as pyramid scam in 1899, to take in  $1 million. Ponzi was charges by Mail fraud (federal), larceny (state) serves for 5 years penalty, 3 years and a half before facing state charge, and 9 years state deportation. His wife Rose Gnecco doesn't know about the real occupation, but the mother of Gnecco telling about his husband past. 

Charles Ponzi was died in the year 18 of January, 1949 at the age of 66 in  Rio de Janeiro, Brazil.