Investment Fraud Essay

1298 Words Dec 8th, 2010 6 Pages
11/28/10 Business 210

Investment Fraud

Charles Ponzi will forever infamously known as the con man of the 1920’s. Ponzi dealt with numerous amounts of investors who all trusted him to make them a profit on their investments. Unfortunately, Charles Ponzi was a crook from the start. He bought a total of $30 dollars in IPRC’s and stole about $30 million of his investor’s money. His brilliant idea that landed him in jail was to not buy IRPC’s at all, but to give people part of their own investments and call it a profit; hence “Ponzi Scheme”. Since the 1920’s there have been numerous “investment managers” who have committed the same con as Ponzi. When you break it down, it really is just handing money to
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Not only did he ruin the lives of thousands but he ruined his own, way to go!
The Ponzi scheme affected my grandfather. In 2008 he invested 16 million dollars with a man who told him that his returns would be great, and his life investment would be safe. John Scafani, of San Diego “was looking to make himself money when he pitched his clients an investment idea that included pooling money to buy homes around California to fix up and then re-sell for a profit.”( However Scafani did exactly the opposite.
Regarding investment fraud, Attorney David Speckman said, "Preying upon people like this is not only immoral but it's illegal in my view, and I think it's a crime." I completely agree with Speckman’s statement because many investment advisors look for the people that have money to invest, and completely take advantage of them. Whether they walk the line of being ethical and truly think about the damage they will cause by deceiving the people that become to know and trust them; or they are just too blinded by greed and the rush of what thieves feel when they steal. As someone who was indirectly affected by a Ponzi scheme, I feel that there needs to be something that can completely prevent this from happening all together. My grandfather’s attorney, as well as Speckman are suing Scafani on behalf of eight other San Diego investors who claimed that Scafani promised to flip

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