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Charles Ponzi: The First Man To Run A Ponzi Scheme

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Charles Ponzi: The First Man To Run A Ponzi Scheme

 

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The term “ponzi scheme” is a common business term that describes when investors pay money into a nonexistent enterprise, and their money is returned to earlier investors as fake payments.

 

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Charles Ponzi: The First Man To Run A Ponzi Scheme

 

But many may not know that the term originated from Charles Ponzi — an Italian con artist and swindler. They used his charismatic charm and persona to invest in his made-up businesses.

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Who was Charles Ponzi, and how did his name become synonymous with fraud?

From rags to riches

 

Born in 1882, Charles Ponzi lived in Lugo, Italy, at the turn of the 20th century. While his family had been initially well-to-do, they had fallen on hard times, and Ponzi spent much of his life growing up poor.

 

He eventually got accepted into the University of Rome La Sapienza to study but ended up spending all of his money and shortly found himself broke and without a degree.

 

With little to his name, he migrated to the United States in 1903 and began learning English. But as he integrated into his new life, he started to dream of ways to generate wealth.

 

The man who claimed to only have “$2.50 in cash and $1 million in hopes” quickly found a way to earn a buck.

 

Ponzi came up with the idea for an international trade journal where he thought he could make a profit selling advertising. But, the bank he sought a $2,000 loan from denied his application, and Ponzi found himself back at square one.

 

A claim to fame

 

But, in August 1919, a new idea came to Ponzi. He received a piece of mail that contained an international reply coupon.

 

The small piece of paper allowed the recipient of international mail to respond without paying for the return mail.

 

The postal coupon, otherwise known as an IRC, could be exchanged for stamps and potentially a profit if the country where the IRC was purchased had different rates from the United States.

 

Ponzi’s brain kicked into overdrive. Ponzi claimed he could purchase large quantities of the IRCs overseas and turn them into profit in America.

 

He quit his job as a translator and started a business around exchanging and profiting off of the IRCs from other countries.

 

But first, he needed the initial investment to get going. So Ponzi went to several of his Boston friends and asked for their money to get going, promising that he would get them a 50% profit in 45 days and a 100% profit in 90 days.

 

His charming personality and suave demeanor got him far, but not far enough. That’s why he hired and trained sales agents who would go out and try to obtain more investors to buy into his idea.

 

Promising the sales agents a commission, these sales agents would pitch Ponzi’s IRC scheme to other wealthy individuals, ensuring Ponzi stayed out of sight and out of mind to those with deep pockets.

 

Ponzi’s Downfall

 

Soon, investors began to realize that the math wasn’t adding up. A man named Joseph Daniels filed a $1 million lawsuit against him in July of 1920, claiming that Daniels was owed part of Ponzi’s fortune for money not returned.

 

By this time, Ponzi lived in a 12-room mansion, had multiple servants, wore fine clothes, and purchased diamonds for his wife. His life was dripping in opulence and luxury — a far departure from the $2.50 he got off the boat 17 years earlier.

 

But, behind the scenes, a reporter at the Boston Post was investigating Ponzi and his business practices.

 

Once the newspaper got word of the lawsuit Daniels was filing, they ran a front-page investigative feature on the suspicious businessman, pegging his net worth at $8.5 million.

 

Today, that money would total over $126 million.

 

Things around Ponzi quickly began to fail after the article came out. For the first time since World War I, the U.S. Postal office changed the IRC rate less than a week after the Post’s report.

 

While they claimed the sudden change in pricing had nothing to do with the Ponzi article, they publicly said it would be impossible to do what Ponzi had founded his business on.

 

He became under initiate by the federal authorities and under the advice of his publicist, agreed to cooperate with the investigation.

 

Soon, his investors flocked to his office and asked for their investment back. Even under pressure, Ponzi maintained a cool, calm, and collected demeanor.

 

Ponzi was able to forgo major consequences for another couple of months until it all came crashing down in August of 1920.

 

The Boston Post came out with another front-page story about Ponzi and fraudulent checks he wrote 13 years earlier in Montreal.

 

That same afternoon, the bank seized Pnozi’s funds due to irregularities.

 

The next 15 years followed with Ponzi in and out of prison on federal counts of mail fraud and larceny.

 

After being released for the last time in 1934, Ponzi was deported back to Italy, telling reporters, “I went looking for trouble, and I found it.”

 

Back in Italy, Ponzi spent his last years largely in poverty, working here and there as a translator. He passed away in 1949.

 

Ponzi schemes today

 

Today, a Ponzi scheme has become a common term used to describe a business scam that “robs Peter to pay Paul.”

 

It’s characteristically led by a charismatic and energetic scam artist, who exploits potential investors with a fear of missing out on a golden opportunity.

 

And while it’s been nearly 100 years since Charles Ponzi laid out his first scam, not much has changed.

 

Last year alone, federal investigators discovered 60 major Ponzi schemes totaling over $3.25 billion in fraudulent scams.

 

Many became familiar with the illegal business practice named after Charles Ponzi when Bernie Madoff was found guilty of running the largest Ponzi scheme in American history, worth nearly $64 billion.

 

While Charles Ponzi might have died alone and mostly poor, his name carries with it a denotation of fraud and scheming — something he might be proud of.

Source: https://www.historydefined.net/charles-ponzi/?fbclid=IwAR11ymyg9N2Xo_kC3uM6Nw2kIitgjnj_F3Js8x7Vhh6DQFe1zRXCRwaQ4tk

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Sanusi II Reinstated As Kano Emir As Prophesied By Apostle Omotosho

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Sanusi II Reinstated As Kano Emir As Prophesied By Apostle Omotosho

Sanusi II Reinstated As Kano Emir As Prophesied By Apostle Omotosho

 

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True prophets are God’s mouthpiece who utters the mind of God and it’s comes to pass. One of such is Apostle Omotosho Tope Joseph who carries unusual prophetic grace upon his life. One of his major prophecies for 2024 has come to pass again.

 

 

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Sanusi II Reinstated As Kano Emir As Prophesied By Apostle Omotosho

In his prophetic release for 2024 he stated that in Kano he sees people congratulating the former Emir of Kano state, HRH Sanusi Lamido. He spoke about his reinstatement ans restoration.

 

Pray Against Plane Crash, Says Apostle Omotosho As he Rolls Out fresh Prophecies On NNPC,Others

 

 

And as predicted, Sanusi Lamido Sanusi II has just been reinstated as the Emir of Kano.

This decision followed the Kano State House of Assembly’s resolution to dethrone the current Emir and also dismantle the four new Emirates in the State established under a controversial 2019 law.

Though it has not been officially announced, LEADERSHIP has it on good authority that Sanusi II has been reinstated, and is expected in Kano on Friday.

According to credible inside sources, “So certainly with the passage of the Bill, Sanusi automatically stands reinstated. No need for confirmation, the thing to is wait for the Governor to assent to it.”

 

 

The then restructuring of the Kano Emirate is seen as a political manoeuvre to diminish the influence of then Emir Sanusi II, a vocal critic of the former Governor Abdullahi Ganduje administration. The creation of the new emirates fragmented the authority of the old Kano Emirate Council, diluting its power and influence.

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Global Applause as Jonathan Ojadah Bags US President’s Lifetime Achievement Award

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*Global Applause as Jonathan Ojadah Bags US President’s Lifetime Achievement Award

 

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H.E. Amb. Dr. Jonathan Ojadah, UNIPGC Global President & IRDCUN-EU Permanent Rep. to the United Nations has made the list of 2024 US President’s Lifetime Achievement award.

The honour is reserved for those who contribute more than 4,000 hours of service in their lifetime. Along with the ultimate honour of presidential recognition, recipients usually receive a personalized certificate, an official pin, medallion or coin and a congratulatory letter from the president of the United States of America.

Announcing his emergence as one of the 2024 recipients of the President Joe Biden’s award, Amb. Ojadah in his social media post said it came after a meticulous review and thorough screening of his career achievements.

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He said, “The fruits of unwavering dedication and diligent work are indeed sweet. For all my strides and successes, I give all glory to God Almighty.”

This honour also confers on him the privilege of recommending distinguished individuals from Africa for this esteemed recognition, an initiative under the patronage of His Excellency, Jo Biden, President of the United States of America.

Meanwhile, President Biden in a personally-signed letter congratulated Dr. Ojadah for his service to humanity saying he is proud to present him with the award.
He said, “I, On behalf of the American people, I extend my heartfelt appreciation to you for your volunteer leadership, and I encourage you to continue to answer the call to serve. I congratulate you on taking it upon yourself to contribute to the public good, and I’m proud to present you with the Lifetime Achievement award which will be confered on you during the Global Peace Leadership Summit and Awards on 29th July, 2024 at South Shore Harbour, Houston Texas, USA.
“This honor is in recognition of your commitment and dedication to gather leaders, experts. and successful entrepreneurs to strengthen ties between the private and public sectors in countries and create policy and initiatives is commendable.” he said.

Biden also applauded Dr. Jonathan for the maiden edition of the Global Peace Leadership Summit & Award (LONDON 2023) ,” I take great pride in recognizing your giant stride in hosting the maiden edition with high level session on Nov 25th. 2023 in London with representatives from across government, Diplomats, civil society, and the private sector to address the growing threat to Peace, Security and democratic Governance – A focus on countries in Africa facing Security and Governance challenges.”

Also, a member of US Congress, Sheila Jackson Lee representing the District of Texas congratulated Dr. Ojadah for his recognition, describing it as a momentous occasion.

In a congratulatory letter she personally signed, the US member of Congress extolled Dr. Ojadah for his humanitarian services which she said has been admirable.

“I take great pride in congratulating H.E. Ambassador Dr. Jonathan Ojadah for choosing to host The 2nd Edition of the Global Leadership Investment Summit and Awards Conference (GLISA TEXAS 2024) at the South Shore Harbor Resort in Houston, Texas. Your passion for humanity and philanthropy illustrated in your many initiatives to improve lives both socially and economically is admirable.

“The Global Leadership Investment Summit and Awards Conference aims to help countries by advancing investments, trade, and capacity building. Your commitment and dedication to gather leaders, experts, and successful entrepreneurs to strengthen ties between the private and public sectors in countries and create policy and initiatives is commendable. Congratulations to H.E. Ambassador Jonathan Ojadah for his efforts to promote global leaders and entrepreneurs and further development and investment in countries.”

This grand event and award presentation is set to unfold in the prestigious city of Houston Texas, USA, on 27th – 29th July, 2024.

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Meet Amb. Adaku Dike A Serial Entrepreneur And Talented Nollywood Actor

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 Meet Amb. Adaku Dike A Serial Entrepreneur And Talented Nollywood Actor*

 

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Ambassador. Adaku J. Dike
She is a Nollywood Actor with years of experience. She is not just an actor for acting sake, she is talented, dedicated and beautiful.

With a bountiful of experience in and outside the country, Amb. Adaku has become a household name.

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She has featured in many movies such as Where is Ella, Not a Burden, Hunting the Angel, Green Wave, Teni’s Big Day, Kali, Terila, Beggers Children, Loving Rona, Mind Game, Madam Koikoi, Stolen, Tickle my Heart, Forever My Girl, Retribution, Scare, Royal Turning Point, Silent Prejudice, Single only in Abuja, Domain of Witches , Reincarnate, God Father, Herbalist Nurse and a host of Nollywood blockbusters.

In 2023, she ventured into production in collaboration with the Nigerian Police and did a short film which was eventually directed by Africa’s most consistent Filmmaker, Dr. Lancelot Oduwa Imasuen.

She started her career as an Accountant with Western Goldfields Nig Ltd in 2010 as a Junior Officer, in 2012, she was moved to Eta Zuma Mining and Industries Ltd as a Senior Officer, her deliverables, sense of discipline and professionalism earn her the position of Head of Finance Department and Head of Administrative Department respectively in 2018 till date.

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She is a Philanthropist, the Founder of ‘Don’t Shame the Name’ Advocacy Foundation, an NGO Registered with CAC, that has put smiles on many faces, the CEO of ‘Many Agro Farms Nig Ltd’, a company that is into Agricultural Products and Food. CEO Janny Many Nigeria Ltd, that’s for general services, supply, contracts, event management and logistics etc.

She is a woman of many values who has ventured into various fields including music, journalism and dancing. This is so due to her passion for the entertainment industry. Adaku is a registered member of Actors Guild of Nigeria, AGN.

Humanitarian work and support is one thing you cannot take away from her identity hence she is a registered member of Lions Club International (Abuja Platinum) she has held positions such as Secretary and Legal Adviser of the Club respectively.

A Bsc holder in Banking and Finance and LLB. Law; just to mention a few, in 2020, she was given the first Award ( Humanitarian Award, In 2021 Young Archivers Award and in 2022, Ambassador of Culture Award, Award of Appreciation from Lion Club etc.

 

In the Course of her career she has been exposed to many trainings, seminars, conferences, conventions both at home and outside Nigeria which has resulted in her becoming diverse and successful in her chosen career.

She also featured prominently in the much anticipated movie, “Issakaba returns” produced and directed by Ambassador Dr Lancelot Oduwa Imasuen.

Meet Amb. Adaku Dike A Serial Entrepreneur And Talented Nollywood Actor*

#Nollywood, #nollydivas, #issakaba, #issakabareturns, #lancelot #lancelotoduwaimasuen, #Adakudike, #Agn, #Agrofarms, #Lionsclub #Abujafilms, #Where is Ella, #Not a Burden, #Hunting the Angel, #Green Wave, #Teni’s Big Day, #Kali, #Terila, #Beggers Children, #Loving Rona, #Mind Game, #Madam Koikoi, #Stolen, #Tickle my Heart, #Forever My Girl, #Retribution, #Scare, #Royal Turning Point, #Silent Prejudice, #Single only in Abuja, #Domain of Witches, #Reincarnate, #God Father, #Herbalist Nurse, #Nollywood blockbusters, #Omonaijablog, #entertainment, #nigerianmovies, #primetv, #silverbird, #AMVCA

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