Ponzi Schemes - How To Recognise Them And Avoid Them

Ponzi schemes are still with us 120 years after Charles Ponzi first promised investors that they would receive 50% profit on their investment within 45 days or 100% profit within 90 days. Similarly to many fraudsters, he spent the money he obtained on himself, buying a large mansion and items of personal luxury, as opposed to funding commercial enterprises and schemes.

Unfortunately, despite the length of time that such strategies have been perpetrated, individuals are still being caught in Ponzi schemes. A high level Ponzi scheme was recently executed in America and notable individuals such as Travis Kelce, the football player, were drawn into the scheme run by Siddharth Jawahar through his company called Swiftarc, based in Texas. He has been sentenced to 11 years in prison following his guilty plea to three counts of fraud. Similarly, a Ponzi scheme that was operating in the UK run by Daniel Pugh from his bedroom in Devon (he is now serving seven years in prison) defrauded