Ponzi scheme

The psychology of falling for a Ponzi scheme
5:15 pm
Wed July 9, 2014

How to fall for a Ponzi in three steps

The Panoramic View Resort in Montauk, NY. Scammers told victims they were investing in a safe mutual fund but instead used the money in the troubled resort.
Credit Photo courtesy of Ed Kim

Six years after Bernard Madoff became a household name, people still fall for Ponzi schemes. That's probably because schemers have a tried and true method backed up by psychology. 

Last year there was a big, $96 million Ponzi scheme on Long Island. It had all the trappings of a Hollywood con: offshore shell companies, luxury cars, and there was even a famous beachfront resort near the Hamptons.

But for the victim there was nothing glamorous about it.

"I thought it was some run-of-the-mill fund," Jan says in a sweet Texan twang that makes friends of almost any ears.

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Business
9:42 am
Fri July 19, 2013

Conn. bank settles Madoff lawsuits

Westport National Bank will pay more than $7 million to about 240 investors, who lost millions in Bernie Madoff's massive Ponzi scheme.