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If there is huge money, there is a scam. There are thousands of money scams going on in the world every year, but few are big and few are small. But only the world's biggest money scam made headlines in the newspaper.
The mind behind those scams is so brilliant that even federal agencies got puzzled by the way these fraudsters defrauded money from people.
In the world of financial frauds, we are going to read about some biggest and world famous money scams, which turn the financial markets upside down.
World's biggest money scams of all time:
1. Charles Ponzi – The original Ponzi Schemes
Inventor of the Ponzi scheme or called pyramid scheme by famous fraudster Charles Ponzi.
He is from Italy. He initiated his scheme via postal stamp in 1920. He bought the International postal reply coupons (Postal Stamps) from Spain at a discount rate and sold them in the US at a higher price.
He recruited poor people in Europe to send him a postal stamp in the US, where he can sell it at a higher price.
He promised his clients 50% profit within 45 days and 100% within 90 days. He simply used the money from new investors to pay off the old investors.
His fraud was uncovered by The Boston Post on 26th July 1920 via a series of articles and revealed that the Ponzi scheme was a scam and he defrauded 20 million USD from investors.
He was sentenced to jail.
2. William Thompson: The Original Con Man
Talking about the world's biggest scams and would not discuss William Thompson, we are not doing justice with the list.
The term con man is derived from him. In the mid-19th century, he was known as a 'confidence man.'
Through his communication skills, he tricked people to believe in him.
He greeted new people with so much warmth that it look like he met them before.
And politely ask “Have you confidence in me to trust me with your watch until tomorrow?”
He applied this trick on so many people and people trusted him with their money.
He was arrested in 1849.
3.Bernie Madoff- Bernard L. Madoff Investment Securities LLC Ponzi Scheme
#BernieMadoff is a Wall Street financier, who owns a company called Bernard L. Madoff Investment Securities LLC.
He scams a total of $65 billion from his investors. One of the biggest scams in history.
He was running a Ponzi scheme by selling securities to investors. He took money from the new investors and returned it to the old ones.
Even Hollywood famous director Steven Spielberg and TV Presenter Larry King was scammed by him.
Bernie was once a chairman of NASDAQ, considered among the investors a man of words, who return a profit he promised to his customers.
His firm sustained the global financial crisis in 1998 and even the 9/11 aftermath.
But in the 2008 recession, his Ponzi scheme was finally revealed.
He was sentenced to 150 years in prison, on charges of securities fraud.
Madoff died in April 2021 due to ill health.
4.Bernard Ebbers – WorldCom Accounting Scandal
Bernard Ebbers was the CEO of WorldCom, a long-distance telecommunication company. He did the biggest fraud in the world.
He defrauded approximately $3.9 billion from his victims.
In 2009 TIME named him the 10th most corrupt CEO of all time.
In 2005 he was sentenced to 25 years in prison by a US district court.
A French rogue trader, who put down French famous bank #Societe Générale’s. It is one of the biggest money scams in the history of the French.
#Jérôme was a derivative trader in Société Générale’s bank in France.
His bad deeds began from here. He started doing unauthorized and false trading by manipulating the company's software.
Because of his risky trading, he lost approximately €4.9 billion of company assets.
He was sentenced to 3 years in prison and the French court ordered him to pay €4.9 billion as compensation in 2010.
His compensation later in 2016 was reduced to €1Million.