A Historical Perspective of Ponzi Schemes

Author

Elizabeth Ann Geny

Date of Award

2012

Document Type

Undergraduate Thesis

Department

Finance

First Advisor

Bonnie Van Ness

Relational Format

Dissertation/Thesis

Abstract

In 2008, the largest Ponzi scheme was discovered—Bemie Madoff cheated investors out of over $50 billion. This left the public with many questions regarding Ponzi schemes. This paper reviews the history of Ponzi schemes including what a Ponzi scheme is. It analyzes Ponzi schemes prior to Bernie Madoff, analyzes Madoff s scheme, and analyzes Ponzi schemes discovered after Madoff. This paper also analyzes various Ponzi schemes throughout history and the role the SEC has played in them. It reviews why the SEC missed Madoff and precautions they are taking to never let such a large scale scheme pass them again. It also provides a description of who the SEC is, what they do, and how investors can avoid investing in a Ponzi scheme.

Recommended Citation

Geny, Elizabeth Ann, "A Historical Perspective of Ponzi Schemes" (2012). Honors Theses. 2011.
https://egrove.olemiss.edu/hon_thesis/2011

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