Charles Ponzi: Bernard Madoff’s Progenitor
Ponzi did not invent the pyramid scheme, but his name will forever be associated with it.
Ponzi Emigrates to North America Flat Broke
Charles Ponzi arrived in America with two dollars and fifty cents in his pocket, having gambled away the rest of his life savings playing cards during the boat trip. In Boston, he took a job at a restaurant, initially as a dishwasher and then, after he had learned to speak English, as a waiter. He was fired after being caught short-changing customers.
In 1907, Ponzi moved to Montreal, Canada, and took a job at a bank that catered to other Italian immigrants. Starting out as an assistant teller, he worked his way up to bank manager. In that position, he discovered that the bank was in serious financial trouble. Its owner promised high interest rates on savings accounts, but was funding the interest payments with money from new accounts. The bank’s owner packed up and fled to Mexico, taking a portion of the bank’s money with him.
Of course, the bank folded leaving Ponzi without a pay check. For some reason, he went to the office of one of the bank’s depositors. When he found it empty, it dawned on Ponzi that he could still get a slice of the pie. Locating the man’s checks, he simply wrote one to himself. It was not a particularly smart move, and Ponzi wound up doing 3 years in a prison near Montreal.
When once again he became a free man, his emancipation would not last long. He became involved in a scheme to smuggle illegal Italian immigrants into the United States, was caught, arrested, and sentenced to two years in an Atlanta prison.
Ponzi Returns to Boston, and Stumbles on to the Con that Would Immortalize Him
Ponzi took a wife in Boston, but was still searching for a scheme that would make him rich. He hit on the idea of publishing a list of business advertisements, similar to the Yellow Pages. To his chagrin, not enough businesses were interested to make the venture profitable. Then he received a mail inquiry about the listing from a company in Spain. The letter did not pique his interest, but what was enclosed with it did. This was an international reply coupon (IRC), something he had never seen before.
An IRC was commonly included as a courtesy in international mail to which a reply was anticipated; it was redeemable at a post office for enough stamps to facilitate return correspondence. IRCs are still available today, but are used far less often. It was now 1919, and Ponzi knew that in the wake of World War I many European nations were experiencing rampant inflation, and this meant that IRCs issued by those nations were more valuable in the US. Using borrowed money, Ponzi had some of his Italian relatives purchase IRCs and send them to him.

3 Comments
To those asking what happened to the auditor at Stanford, he was found dead, perhaps Stanford et al. including their lawyers Proskauer and Thomas Sjoblom should be investigated for murder as well.
SPECIAL REPORTS
Another Stanford Group associate died without much notice in January
By Wayne Madsen Online Journal Contributing Writer Mar 5, 2009, 00:19(WMR) — On February 27, WMR reported on the death in January of this year of Charlesworth Shelley Hewlett, the accountant who audited the books of Stanford International Bank from a small office between fish and chips shops in north London. Hewlett was 73 and his lawyers said only that he died “peacefully.” WMR has learned from a state government source in the United States that Hewlett’s death was “unusual,” however, little more is known about the circumstances of Hewlett’s death
—
Thomas Sjoblom of Proskauer Rose is pointed to in both the SEC and FBI filings as the man behind the scenes, directing employees to lie to the SEC re the financial condition of the companies. Why was Proskauer and Sjoblom not directly named by the FBI and SEC to give the victims full disclosure of how the scheme was worked with the SEC former enforcement dude Sjoblom. Holt has sued Proskauer and Sjoblom but why has the receiver not seized their assets and firm, how can the firm continue to operate with liability insurance unless their carrier is unaware and Proskauer failed to notify them of their integral part and massive pending liabilities??? The FBI and SEC investigators should formally charge Proskauer and the victims should demand Proskauer to fully disclose their role in ripping off their money.
Proskauer also represents Willis Group Holdings who has also been sued in the Stanford mess for aiding and abetting the Stanford scam.
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MADOFF + STANFORD + DREIER + BAYOU GROUP (SAMUEL ISRAEL) + SATYAM + FISERV + ALBERT HU + The 1031 Tax Group LLC – Edward H. Okun = PROSKAUER ROSE & FOLEY & LARDNER
Foley & Lardner partner Patricia J. (Trish) Lane represented FISERV, sue Foley, read on.
Investors who have been burned in these scams should start to seek redress from the lawyers who were involved with these scams. I personally have been trying to notify regulators and authorities of a ONE TRILLION DOLLAR scam that is putting states like New York and Florida at huge risk, as well as, companies like Intel, Lockheed, SGI and IBM. The states and companies involved in the fraud fail to acknowledge the risk exposing shareholders and citizens to impending liabilities. Investigators, courts and federal agents ignoring the crimes and evidence, including a car-bombing attempt on my life. I know how Harry Markopolos felt trying to expose Madoff in a world without regulation.
Did I hear Proskauer Rose is involved in Madoff (involved many clients too) and acted as Allen Stanford’s attorney. Investors who lost money in these scams should start looking at the law firm Proskauer’s assets for recovery. First, Proskauer partner Gregg Mashberg claims Madoff is a financial 9/11 for their clients, if they directed you to Madoff sue them. The most interesting point in the Madoff Proskauer linkage is that Jacqueline Wood a former SEC enforcement head was given a report in 2004 showing that Madoff was a scam by Walker-Lightfoot a SEC lawyer which Wood then buried and then was hired by, you guessed it, Proskauer Rose.
Proskauer also hired the lawyers involved in the Bayou Hedge fund scam of Samuel Israel, the guy who faked his airplane death to evade prosecution.
Then, Proskauer partner Thomas Sjoblom former enforcement dude for SEC and Allen Stanford attorney, declares PARTY IS OVER to Stanford employees and advises them to PRAY, this two days before SEC hearings. Then at hearings, he lies with Holt to SEC saying she only prepared with him but fails to mention Miami meeting at airport hanger. Then Sjoblom resigns after SEC begins investigation and sends note to SEC disaffirming all statements made by him and Proskauer, his butt on fire. If you were burned in Stanford sue Proskauer.
Proskauer Rose and Foley & Lardner are also in a TRILLION dollar FEDERAL LAWSUIT legally related to a WHISTLEBLOWER CASE also in FEDERAL COURT. Marc S. Dreier, brought in through Raymond A. Joao of Meltzer Lippe after putting 90+ patents of mine in his own name, is also a defendant in the Federal Case.
The Trillion Dollar suit according to Judge Shira Scheindlin is one of PATENT THEFT, MURDER & A CAR BOMBING. For graphics on the car bombing visit http://www.iviewit.tv.
The Federal Court cases
United States Court of Appeals for the Second Circuit Docket 08-4873-cv – Bernstein, et al. v Appellate Division First Department Disciplinary Committee, et al. – TRILLION DOLLAR LAWSUIT
Cases @ US District Court – Southern District NY
(07cv09599) Anderson v The State of New York, et al. – WHISTLEBLOWER LAWSUIT
(07cv11196) Bernstein, et al. v Appellate Division First Department Disciplinary Committee, et al.
(07cv11612) Esposito v The State of New York, et al.,
(08cv00526) Capogrosso v New York State Commission on Judicial Conduct, et al.,
(08cv02391) McKeown v The State of New York, et al.,
(08cv02852) Galison v The State of New York, et al.,
(08cv03305) Carvel v The State of New York, et al., and,
(08cv4053) Gizella Weisshaus v The State of New York, et al.
(08cv4438) Suzanne McCormick v The State of New York, et al.
( ) John L. Petrec-Tolino v. The State of New York
To those asking what happened to the auditor at Stanford, he was found dead, perhaps Stanford et al. including their lawyers Proskauer and Thomas Sjoblom should be investigated for murder as well.
SPECIAL REPORTS
Another Stanford Group associate died without much notice in January
By Wayne Madsen Online Journal Contributing Writer Mar 5, 2009, 00:19(WMR) — On February 27, WMR reported on the death in January of this year of Charlesworth Shelley Hewlett, the accountant who audited the books of Stanford International Bank from a small office between fish and chips shops in north London. Hewlett was 73 and his lawyers said only that he died “peacefully.” WMR has learned from a state government source in the United States that Hewlett’s death was “unusual,” however, little more is known about the circumstances of Hewlett’s death
—
Thomas Sjoblom of Proskauer Rose is pointed to in both the SEC and FBI filings as the man behind the scenes, directing employees to lie to the SEC re the financial condition of the companies. Why was Proskauer and Sjoblom not directly named by the FBI and SEC to give the victims full disclosure of how the scheme was worked with the SEC former enforcement dude Sjoblom. Holt has sued Proskauer and Sjoblom but why has the receiver not seized their assets and firm, how can the firm continue to operate with liability insurance unless their carrier is unaware and Proskauer failed to notify them of their integral part and massive pending liabilities??? The FBI and SEC investigators should formally charge Proskauer and the victims should demand Proskauer to fully disclose their role in ripping off their money.
Proskauer also represents Willis Group Holdings who has also been sued in the Stanford mess for aiding and abetting the Stanford scam.
—
MADOFF STANFORD DREIER BAYOU GROUP (SAMUEL ISRAEL) SATYAM FISERV ALBERT HU The 1031 Tax Group LLC – Edward H. Okun = PROSKAUER ROSE & FOLEY & LARDNER
Foley & Lardner partner Patricia J. (Trish) Lane represented FISERV, sue Foley, read on.
Investors who have been burned in these scams should start to seek redress from the lawyers who were involved with these scams. I personally have been trying to notify regulators and authorities of a ONE TRILLION DOLLAR scam that is putting states like New York and Florida at huge risk, as well as, companies like Intel, Lockheed, SGI and IBM. The states and companies involved in the fraud fail to acknowledge the risk exposing shareholders and citizens to impending liabilities. Investigators, courts and federal agents ignoring the crimes and evidence, including a car-bombing attempt on my life. I know how Harry Markopolos felt trying to expose Madoff in a world without regulation.
Did I hear Proskauer Rose is involved in Madoff (involved many clients too) and acted as Allen Stanford\’s attorney. Investors who lost money in these scams should start looking at the law firm Proskauer\’s assets for recovery. First, Proskauer partner Gregg Mashberg claims Madoff is a financial 9/11 for their clients, if they directed you to Madoff sue them. The most interesting point in the Madoff Proskauer linkage is that Jacqueline Wood a former SEC enforcement head was given a report in 2004 showing that Madoff was a scam by Walker-Lightfoot a SEC lawyer which Wood then buried and then was hired by, you guessed it, Proskauer Rose.
Proskauer also hired the lawyers involved in the Bayou Hedge fund scam of Samuel Israel, the guy who faked his airplane death to evade prosecution.
Then, Proskauer partner Thomas Sjoblom former enforcement dude for SEC and Allen Stanford attorney, declares PARTY IS OVER to Stanford employees and advises them to PRAY, this two days before SEC hearings. Then at hearings, he lies with Holt to SEC saying she only prepared with him but fails to mention Miami meeting at airport hanger. Then Sjoblom resigns after SEC begins investigation and sends note to SEC disaffirming all statements made by him and Proskauer, his butt on fire. If you were burned in Stanford sue Proskauer.
Proskauer Rose and Foley & Lardner are also in a TRILLION dollar FEDERAL LAWSUIT legally related to a WHISTLEBLOWER CASE also in FEDERAL COURT. Marc S. Dreier, brought in through Raymond A. Joao of Meltzer Lippe after putting 90 patents of mine in his own name, is also a defendant in the Federal Case.
The Trillion Dollar suit according to Judge Shira Scheindlin is one of PATENT THEFT, MURDER & A CAR BOMBING. For graphics on the car bombing visit http://www.iviewit.tv.
The Federal Court cases
United States Court of Appeals for the Second Circuit Docket 08-4873-cv – Bernstein, et al. v Appellate Division First Department Disciplinary Committee, et al. – TRILLION DOLLAR LAWSUIT
Cases @ US District Court – Southern District NY
(07cv09599) Anderson v The State of New York, et al. – WHISTLEBLOWER LAWSUIT
(07cv11196) Bernstein, et al. v Appellate Division First Department Disciplinary Committee, et al.
(07cv11612) Esposito v The State of New York, et al.,
(08cv00526) Capogrosso v New York State Commission on Judicial Conduct, et al.,
(08cv02391) McKeown v The State of New York, et al.,
(08cv02852) Galison v The State of New York, et al.,
(08cv03305) Carvel v The State of New York, et al., and,
(08cv4053) Gizella Weisshaus v The State of New York, et al.
(08cv4438) Suzanne McCormick v The State of New York, et al.
( ) John L. Petrec-Tolino v. The State of New York
wow