Charles Ponzi was an Italian immigrant whose persuasive promises led thousands of eager investors to buy into his postage stamp speculation in 1920. Ponzi himself made millions as he borrowed from Peter to pay Paul — that is, he took in lots of money based on staggering returns, and then paid off his earlier victims with money invested by later participants. As long as more and more people gave Ponzi money, the scheme worked.

Eight months, 10,000 investors, and $9.5 million later, Ponzi's pyramid collapsed, and his surname became part of the English language with the meaning, "an investment swindle in which some early investors are paid off with money put up by later ones in order to encourage more and bigger risks."