Ponzi Record

United States ยท December 1919 to August 1920, according to Smithsonian magazine

Securities Exchange Company (postal reply coupon scheme)

Smithsonian magazine reported that Ponzi claimed he could profit by buying international postal reply coupons abroad and redeeming them in the US, offered 50 percent interest in 45 days, and paid early investors with money from newer ones. It said a final audit found only $61 worth of coupons.1

Losses as statedSmithsonian magazine estimated he took in about $15 million in eight months in 1920.1
Victims as statedAbout 40,000 people, according to Smithsonian magazine.
Recovered for investorsSmithsonian magazine reported that note holders recovered less than 30 cents on the dollar.1

People and outcomes

Charles Ponzi

Arrested in August 1920. Convicted federally of using the mail to defraud and served about three and a half years before parole. Convicted on Massachusetts fraud charges in 1925. Deported to Italy on 7 October 1934. Died in Rio de Janeiro on 18 January 1949.1,2,3

Response: No response is recorded in the sources reviewed.1

Timeline

  1. Run on Ponzi's office, with over $1 million paid out in one day.1
  2. Ponzi arrested.1
  3. Ponzi deported to Italy.1,3
  4. Ponzi dies in Rio de Janeiro.1,2

Sources

  1. Smithsonian Magazine, In Ponzi we trust (December 1998)
  2. Biography.com (A&E Networks), Charles Ponzi (28 October 2026)
  3. Maryland Center for History and Culture (Maryland Historical Society), Ponzi's plea (28 October 2026)