A Ponzi Scheme Even Ponzi Would be Ashamed of

Posted on 19. Jan, 2006 by in Saving & Investing

Ponzi's Scheme : The True Story of a Financial LegendThe Ponzi Scheme has been around forever and is often thought of as the “father” of the modern-day pyramid scheme. The original fraud, committed by Charles Ponzi in the early 1900’s, consisted of promising huge investment returns (45% in 45 days or double your money in 90). 40,000 people eventually invested $15 million because they actually saw the returns he was promising. However, the “scheme” was that he was using the money from the newest “investors” to fund the returns of the first “investors” – so as long as more and more people signed up for the “investment fund” then everyone got the returns they were promised. Of course, when the government began to catch on, the entire pyramid collapsed and people recovered about a third of what they originally invested.

Well, the Ponzi scheme has never really died. You can even read about some great examples of larger Ponzi schemes at Wikipedia. However, I bring the story up to show you that the Ponzi scheme is just one more scam that people are still using today. In fact, a student here in town was given a flyer advertising GetPaidToClick which promised thousands of dollars for just clicking on the internet. Well, he was a fairly bright kid and emailed the company asking them about the operation. The following is his exact email:

>To: Getpaidtoclick@hotmail.com
>Subject: Will click for $
>Date: Mon, 16 Jan 2006 10:49:04 -0700
>
>Dear Ad man-
>
> I am writing in reply to your ad that you were handing out on campus
>the
>other day. I am interested and would like to learn more about this job.
>Please email the info that will help make me the best clicker in the world.
>My friends think I’m stupid and tell me that this is a hoax so please help
>me prove them wrong or let me know that it is. I hope it’s not.
>

_________________________________________________________________
On the road to retirement? Check out MSN Life Events for advice on how to
get there! http://lifeevents.msn.com/category.aspx?cid=Retirement

The following is the company’s response:

From: Five-Minute Internet-Surf-Program
Date: Jan 16, 2006 12:41 PM
Subject: RE: Will click for $

Hello, and thank you for your response.
This get paid to click program is part of a HYIP. A High Yield Investment
Program. We have been personally invested since its conception. We will be
up front with you, this is a ponzi scheme. That is not to say that you can
not make a lot of money, because I guarantee you will. Here is what the FBI
says about ponzi schemes http://www.sec.gov/answers/ponzi.htm

Here is the catch ponzi schemes are illegal in USA. However they are not
illegal in Singapore where the ponzi scheme I will show you is located.
Also, if you make money on the internet out of singapore you are not bound
by the laws in USA. There for this is a legal investment most people call a
HYIP. It is our goal at getpaidtoclick to make sure everyone who wants to
participate is informed about what HYIPs are before they join.

HYIPs This should be treated like a penny stock, because you are always
guessing how long the program will be around or if the program is at its
peak. The program we will show you has been around for 8 months and is
still in the growth stage. There is a HYIP meeting back east in a month
where thousands of people are expected to attend and share there strategies
for HYIPs.

Because you wanted the uncut version of what this getpaidtoclick program is
all about well here it is: you can join for free and watch how it works with
out any emotions involved or you will get paid 12% daily on every unit of
upgrade you purchase for 6$. So if you want to get started instead of just
watch you will want to upgrade.

This is how you will upgrade: Follow the above attachment instructions.

After you have followed the instructions in the attachments please feel free
to contact us at any time for further questions.

Thank you and good luck autosurfing.

After I read this I couldn’t help but laugh. First of all, Ponzi would be ashamed that this company is actually admitting the fact that they are nothing but a scam. Secondly, the fact that they are so “honest” and “up-front” about their operation is how they are able to recruit so many people. However, the good readers of BeancounterBlog.com know better – a Ponzi scheme is illegal in the U.S. even if conducted in another country. In fact, the above emails have been forwarded to the local FBI office for investigation.

So even if you think a college campus is safe – think again. Scammers and fraudsters are everywhere and will do anything to get your money. Just be sure to be aware of anything too good to be true.

8 Responses to “A Ponzi Scheme Even Ponzi Would be Ashamed of”

  1. benjamin pritchard

    19. Jan, 2006

    isn’t social security just a ponzi scheme? order maybe this is like saying that war is murder. once something has been institutionalized, it is no longer wrong.

  2. Jason

    19. Jan, 2006

    At first I agree with you. Social security is definately not a perfect system and is in fact based on the Ponzi scheme – but with one difference: Social Security is backed by the magical “good faith” and trust in pieces of paper called bonds. Social security would quickly fall apart in exactly the same way as the Ponzi scheme if everyone lost faith in U.S. Treasury bonds. However, since our entire economy as well as our currency is based upon that trust, I must support it or risk losing everything I have. So in that sense modern-day social security is slightly different than a Ponzi scheme – there are actual “investments” that are being made on the part of social security.

  3. merkin

    20. Jan, 2006

    Bah… Don’t pee on my leg and tell me it’s raining treasury bonds.

  4. Don Lapre is a Superstar

    12. Dec, 2006

    The great Ponzi scheme!!!!!!!!!! And thank you for your advices given…Ok.Thanks…

    Don Lapre is a Superstar
    webmaster@j-ams.org
    http://www.j-ams.org

  5. scam buster

    16. Sep, 2007

    wow tried to tell you guys about don getting his tail lit up for his own little ponzi scheme by the fbi but admin must be don himself cause he won’t post this hmmm
    if u r I am not done with you yet LOL.

  6. David

    20. Dec, 2007

    One thing that you shouold never do is join any paid to click programs that you have to pay money for investments. They are scams and illegal. I am in many paid to read and paid to click programs that are free to join, and you do not have to spend one penny. It is optional to pay money for upgrades or advertisements, but no invesement in them but your time. These types of paid to click or paid to read programs make the legal ones look bad as well.

Trackbacks/Pingbacks

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    […] For those who may have missed it, 12 Daily Pro is a textbook example of a Ponzi scheme. The site is one of many that have surfaced over the years alleging that by spending 5 minutes a day surfing the internet, you can make a %12 daily return on your investment. The program works – for a little while – because those ridiculous returns are paid for using the money from the shmucks who just signed up. The cycle continues until the house of cards collapses. And the house of 12 Daily Pro is collapsing right now. […]

  2. BeancounterBlog.com » Blog Archive » The 12 Daily Pro Beast is Dead! - February 28, 2006

    […] ABC 4 in Salt Lake City reported yesterday that 12 Daily Pro – the now infamous Ponzi scheme – is finally closing its doors – for good. […]

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