You Can`t Cheat An Honest Man

Author: James Walsh
ISBN: 1563431696:
Publisher: Silver Lake Publishing

In 1903 Charles Ponzi arrived in the USA with the aim of becoming as wealthy as Rockefeller. His modus operandi was based on the principle of robbing Peter to Pay Paul.

James Walsh, in his informative book, You Can`t Cheat An Honest Man: How Ponzi Schemes and Pyramid Frauds Work..and Why They`re More Common Than Ever, traces the origins of the Ponzi Scheme, and explores how and why the scheme works with its different modern day variations.

The first part of the book narrates how, after spending some time in prison for cheque forgery, Ponzi found a creative way to shaft people, that was even legal and possibly sound.

What Ponzi would do was to take advantage of the disparities in the foreign exchange rates pertaining to the postal currency of International Reply coupons. If these coupons could be purchased in countries where they were still hit hard by the after-effects of World War I, he could then redeem them for stamps or cash in the USA, where there value would be as much as 50% higher. Presto! He was onto a brilliant scheme, however, he needed money to expand his enterprise.

In order to raise the needed cash, he promised investors that he would pay them high rates of interest with the profits from his scheme. As is the case today, people were gullible and greedy, and Ponzi had little difficulty in attracting huge sums of money.

However, Ponzi found it difficult to keep meeting his obligations of paying his investors. He resorted to using fresh money to keep his original investors satisfied. And thus began the Ponzi Scheme, that is alive and well today with multiple variations on the original theme.

One such variation is the very popular pyramid sales scheme, where individuals are seduced to become part of a plan for the sale or distribution of goods, services or other property, and wherein they acquire the opportunity to receive monetary compensation, which has little to do with the volume or quantity of goods or services sold but rather on the number of additional persons that could be recruited to join the plan.

The author devotes considerable print to these schemes, as well as making reference to the abundance of jurisprudence that defines and outlaws these plans.

Anyone wishing to protect himself or herself, would do well in thoroughly reading the concluding chapter. It is here where we are given some very sound advice- to be wary of get rich schemes, watch out for deals that offer high yields, if you do not understand the investment, stay away from it, seek professional advice before investing in anything and check out who are the promoters.

Walsh has a sharp eye as to important details, and with his wide use of informative examples, readers receive a comprehensive understanding as to just how wide spread these fraudulent schemes are and how not to be seduced by them.

Norm Goldman is Editor of the book reviewing site, http://www.bookpleasures.com. The site comprises over twenty five international prestigious reviewers who review all genre. Norm is always open to receiving book review inquiries.


Free Quran in All Languages

Free Tafsir Books

Turn That Fixed Rate Mortgage Into A Goldmine

When you purchased your home, you most likely got a... Read More

My Ambitious Niche - A Completely NEW Way To Find Ambitious Wealth

Turn to the year 1999, a couple of friends sitting... Read More

The Parthenon Principle

Have you seen a picture of the Parthenon in Athens,... Read More

Its High Time for Lifetime Savings Accounts

I'm constantly reading articles on the internet and in financial... Read More

Financial Planning For Singles

Financial planning often gets a bad rap. Part of the... Read More

How to Save Money and Take the Vacation You Always Wanted

Many people don't realize how much money they spend on... Read More

Building Wealth by Paying Yourself First

When I look around at all of my friends, and... Read More

My Entrepreneurial Fire-I Grabbed My First Million Before I Got Too Old

My First Million took me exactly 27 months to achieve.... Read More

A New Paradigm Shift In Earthly Wealth

Hello,If you dont understand this yet, or have not heard... Read More

Your Own Products Can Make You Rich

Although there are advantages to selling other people`s products and... Read More

The Three Step Plan To Prosperity

You have $100 in your bank account, your rent is... Read More

Top 10 Secrets of Getting Rich!

As many people have observed, "Success leaves clues." If you... Read More

Wealth And Your Net Worth

Most people know it's important to keep and organize all... Read More

Financial Intelligence - Compounding (The Ninth Wonder of the World)

Compounding: The Ninth Wonder of the WorldBy Nicola Cairncross Compounding... Read More

Generate Savings with Smart Use of Electricity!

No matter what income level you are currently at, generating... Read More

The Truth About Setting Up A Wealth-Pump Business: The Passive Income Myth Exposed

In theory the idea of generating additional (and passive) business... Read More

Who Else Is Tired of Life Punching Them in the Face?

Remember the bloodied face of Randall "Tex" Cobb?He was a... Read More

A Completely New Way To Get Rich Rapidly

This new way is catching on around the world. People... Read More

Budget Tips

To budget, to have a budget and to be on... Read More

Creating Money, Prosperity, and Abundance Now (Part 1)

I have given many prosperity lectures over the years and,... Read More

You?re Eating Your Retirement Money

Ever think about how eating all those fast food meals... Read More

Starting With Smaller Goals First And Work Your Way Up Until You Achieve Financial Freedom

While you need to have a lot of positive-thought and... Read More

The Mathematical Formula For Making Money

No matter what markets you serve; what products you sell;... Read More

What it Means to be Rich

Many people have a false understanding of what it actually... Read More

Financial Freedom for Every Employee

You may think you have to be an entrepreneur to... Read More