Finance & Fury Podcast

Welcome to Finance and Fury, Furious Friday! I saw an ad this week for a movie called ’Wizard of Lies’ – Bernie Madoff movie – 2008. He was a stockbroker, investment adviser and financier who made headlines around the world when he was arrested for one of the largest accounts of financial fraud in U.S. history. What he was operating was known as a Ponzi Scheme (named after Charles Ponzi, who became notorious for using the technique in the 1920s)   For those who aren’t aware the definition of a Ponzi scheme is a form of fraud marketed as an investment – the usually have high, guaranteed returns – “too good to be true” Fraud - a thing intended to deceive others through wrongful or criminal deception intended to result in financial or personal gain. The success is reliant on new inflows from investors, as that is where returns come from. In other words: A Ponzi scheme is a system where the investor thinks their money is invested in something which is generating the returns, but are actually just used to pay oth