Image using Janafi and taking her screen shot

Sabda tells a simple story about what is happening now who are targeting others

After a few discussions, my parents decided to invest with this merchant. After a month, the amount returned with the promised profit. My parents are encouraged to tell some family friends about this investment. Most of them decided to invest some money in it. But disappeared "Trader Harbouq" and disappeared with him according to the conversations a few million pounds.

 What surprised him then was the source of the profits that the trader had been paying in the previous months, where he came from, especially when he discovered that the warehouses he claimed were owned by a company he had never heard of. I forgot the story for years until I accidentally read about Ponzi Scheme and knew that was what happened.

How the scheme works:

In principle, this trick is very simple for the outlet but is tightly hidden for those who are tempted to process the monument.

In the beginning, the outlet here needs fictitious work to cover the alleged profit source. The work may have been the work of my family's deception, a smuggled goods seller, a customs clearance office, an import and export company or other business. After that, the executor must find a group of victims (or, as investors call them) to invest in his alleged trade, and this can not be achieved without appearing in the form that he claims in terms of being "playing money with a game" and showing signs of ignorance and luxury. After getting a group of investors and earning them huge profits like 1% every day or 100% after three months; other groups must be grouped on regular times so that investments are neither deposited nor paid at the same time.

After several groups of investors collect the profits of Group I investments, he pays these profits from the funds of the following groups and thus pays the profits of each investment group from the next investment. The big profit from this ranking will encourage investors to reinvest their money and profits and often their savings to earn a bigger profit, and usually tell their friends and families to take advantage of this opportunity. Thus, the amount of investments deposited with the operator increases over time and accumulates funds until the pace of investment increases. There are two options: either to flee with money and disappear altogether, or he will be asked to pay money and profits he can not afford to pay off the entire scheme collapses here.

Although this trick shows that it is aimed at the general public who are not only aware of the economy, but historically has carried out many copies of this scheme both to the public or even to large investment companies.

Bonazai scheme in legitimate business:

Not all Bonazai schemes start with the intention of plundering and embezzling investors' money normally; often they start as a legitimate business such as car trading so that the company pays investor investments periodically until a problem occurs and you can not make the desired profit. Here sometimes the company chooses to visit So that they show that they have achieved the required profit, and are paid to investors from the investors' subsequent investment. The goal here is to maintain the reputation of the company and attract more and more investors until the investment bubble reaches the limit of the explosion and the company is obliged to pay the profits of investments unable to cover them and the perpetrators of the trick (disappear with the money of investors).

Historical examples of the scheme:

1. Ponzi

The scheme began in 1920 in Boston, United States, where Bonzai persuaded investors that he had found a lucrative profit opportunity by buying rebate cards at a discounted price and then selling them elsewhere at full price. He also promised them that he would double the investment in just 90 days.

In the end, Bonzai was able to embezzle $ 8,000,000 ($ 8 million) from 30,000 investors in just seven months. After the collapse of the trick he was arrested and imprisoned for 5 years for using mail in a scam.

2 - Miller

Despite the naming of the scheme as Bonzai, he was not the first to deception. In 1890, William Miller offered a 10% weekly profit to investors (520% per annum) and due to strong investor appetite he managed to steal more than $ 1,000,000 US $ 1 million). As a result, he was arrested and jailed for 10 years; he was a key witness in the case against Bonzai in the 1920s.

3. Branca

In Portugal, between 1970 and 1984, Branca managed to maintain a scheme that paid 10% monthly profits. When the plan was exposed, it received more than € 85,000,000 (€ 85 million), equivalent to approximately $ 120,000,000 ($ 120 million).

She was sentenced to 10 years in prison, although she repeated that "all she did was for the poor."

4- G Company David & Company

In San Diego, California, the company opened an investment opportunity under the name of its founder in the early 1980s. The opportunity was later revealed to be the Ponzi scheme. Managed to capture about $ 200,000,000 (almost US $ 200 million) almost exclusively from wealthy investment firms and investors in northern California.

5- MMM Company

It was a Russian company in the early 1990s (with the collapse of the Soviet Union and the liberation of the Russian market). One of Bonazai's most famous schemes, the company provided fantastic profits to its investors, which amounted to 1000% annually, attracting between 5 and 40 million investors and $ 10,000,000,000. (US $ 10 billion).

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By Ali Wadee Hassan

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