Notorious Ponzi Schemes and Scammers

1. Bernie Madoff
   • Scheme Size: $65 billion.
   • Details: Ran the largest Ponzi scheme in history through Bernard L. Madoff Investment Securities LLC. Promised consistent, above-market returns for decades.
2. Charles Ponzi
   • Scheme Size: ~$15 million in 1920 (worth hundreds of millions today).
   • Details: The scheme’s namesake, who defrauded investors through arbitrage of international postal reply coupons.
3. R. Allen Stanford
   • Scheme Size: $7 billion.
   • Details: Stanford Financial Group lured investors with fraudulent certificates of deposit (CDs).
4. Bitconnect
   • Scheme Size: Estimated $3 billion.
   • Details: Cryptocurrency-based Ponzi scheme promising high returns through a „trading bot.“
5. Tom Petters
   • Scheme Size: $3.65 billion.
   • Details: Used his company, Petters Group Worldwide, to run a multi-billion-dollar Ponzi scheme involving fake purchase orders.
6. Scott Rothstein
   • Scheme Size: $1.2 billion.
   • Details: Ran a Ponzi scheme involving fabricated legal settlements through his law firm.
7. Gerald Payne (Greater Ministries International)
   • Scheme Size: $448 million.
   • Details: Targeted religious communities with promises of double returns from investments.
8. TelexFree
   • Scheme Size: $3 billion.
   • Details: Posed as a legitimate internet phone service provider but ran a pyramid-style Ponzi scheme.

Common Traits of Scammers

• Charisma and Trustworthiness: Scammers often appear highly credible and persuasive.
• Exploitation of Communities: Many target specific groups, such as religious or cultural communities, to build trust.
• Promises of Unrealistic Returns: High, consistent returns are a hallmark.
• Use of Complex Structures: Fake documents, businesses, or technology (e.g., „trading bots“) are often used to lend legitimacy.

How to Check for Known Scammers

1. Regulatory Websites:
   • U.S. SEC: SEC Investor Alerts
   • FCA (UK): Warning List
   • ASIC (Australia): Moneysmart
2. Investor Protection Organizations:
   • Look up names and companies through organizations like FINRA, Investor.gov, or local financial authorities.
3. News and Court Records:
   • Search for lawsuits, criminal charges, or financial investigations involving suspected individuals or companies.

If you’re dealing with an investment opportunity, always verify its legitimacy with these resources before proceeding.