On this day, Jan. 12, in 1949, Charles Ponzi, engineer of one of the most spectacular swindles in history, died destitute in Brazil. He was 66.
His name is permanently associated to scams that pay early investors out of the investments of later investors.
Ponzi did not invent the scam, but he played it on such a grand scale that the scheme now bears his name.
In 1920, Ponzi duped thousands of New England investors in a postage stamp speculation scheme, promising a 50 percent interest in 90 days.
In a matter of months, Ponzi took in $20 million before anyone caught on.
Ponzi was convicted of mail fraud that year. He served several years in federal and state prisons before he was deported to Italy in 1934, never having become a citizen.
-- Scott McCabe
