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Anatomy True Crime #1
Anatomy of a Ponzi: Scams Past and Present
Charles Ponzi lent the Ponzi scheme its name, but he is not the first—or the last—to dupe investors with this age-old con.
The biggest Ponzi scheme of all time is operating under the radar right now, unknown and undetected by regulators and unsuspecting investors. Learn how to spot a Ponzi scheme and discover my stunning prediction of exactly where, when, and how this massive Ponzi scheme will finally collapse.
Could you be a victim and not know it? Many people were unaware their money was tied up in Bernard Madoff’s fraud. Find out what makes these fraudsters tick, and learn how Tom Petters, Scott Rothstein, and other fraudsters amassed billions before their arrests.
The biggest Ponzi scheme of all time is operating under the radar right now, unknown and undetected by regulators and unsuspecting investors. Learn how to spot a Ponzi scheme and discover my stunning prediction of exactly where, when, and how this massive Ponzi scheme will finally collapse.
Could you be a victim and not know it? Many people were unaware their money was tied up in Bernard Madoff’s fraud. Find out what makes these fraudsters tick, and learn how Tom Petters, Scott Rothstein, and other fraudsters amassed billions before their arrests.
280 pages, Paperback
First published December 28, 2013
18 people are currently reading
2040 people want to read
About the author
Colleen Cross
34 books151 followersColleen Cross writes exciting, intelligent thrillers and engrossing mysteries that grip you from the very first page. She took her very own "Exit Strategy" from the corporate world into the book world several years ago to indulge her bookworm wannabe writer self.
She lives with her family on the West Coast. When she's not writing, she loves to run and explore with her rescue dog, Jaeger, who reminds her daily that life's too short to not follow your dreams--or a squirrel or two.
Her books have been translated into multiple languages with more to come.
Visit her website at www.colleencross.com and sign up for her twice-yearly private newsletter and be the first to hear of new releases and exclusive subscriber-only offers.
Connect with her on social media:
Facebook at www.facebook.com/colleenxcross
Twitter: @colleenxcross
or find her on Goodreads
She lives with her family on the West Coast. When she's not writing, she loves to run and explore with her rescue dog, Jaeger, who reminds her daily that life's too short to not follow your dreams--or a squirrel or two.
Her books have been translated into multiple languages with more to come.
Visit her website at www.colleencross.com and sign up for her twice-yearly private newsletter and be the first to hear of new releases and exclusive subscriber-only offers.
Connect with her on social media:
Facebook at www.facebook.com/colleenxcross
Twitter: @colleenxcross
or find her on Goodreads
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Displaying 1 - 18 of 18 reviews
October 1, 2019
Audiobook review
What an eye opener this book was. I was actually stuck for words at some of the tricks these people pulled & im never stuck for words!
From many years ago to modern day Colleen Cross covers Ponzi schemes & scams. Though it’s a heavy listen it’s so interesting it’s a must listen if you like to hear what people get up to.
If you do invest I’d advise you listen as there is good advice of what to look for & what to hugely avoid.
A good solid factual audiobook by a good author.
What an eye opener this book was. I was actually stuck for words at some of the tricks these people pulled & im never stuck for words!
From many years ago to modern day Colleen Cross covers Ponzi schemes & scams. Though it’s a heavy listen it’s so interesting it’s a must listen if you like to hear what people get up to.
If you do invest I’d advise you listen as there is good advice of what to look for & what to hugely avoid.
A good solid factual audiobook by a good author.
August 22, 2017
" My game was simple. It was the old game of robbing Peter to pay Paul." -Charles Ponzi
In anatomy of a Ponzi, Colleen Cross endeavors to expose the world of investment scams to protect future victims and also hopefully create laws that provide more than a slap on the wrist to scammers.
The first section of the book is a general overview of the sort of mind that creates Ponzi scams. They share ten characteristics with psychopaths. In fact she calls them financial psychopaths:
1. Superficial Charm.
2. Grandiose Self-worth
3. Need for Stimulation, easily bored
4. Pathological liar
5. Manipulative
6. Lack of remorse
7. No emotional depth
8. No empathy for others suffering
9. Parasitic Lifestyle- lives off others money
10. Poor self-control
Hmm...reminds me of a man I once dated...
After giving the general description of Ponzi schemers she gives us the history of several from the past century, starting with the one who gave his name to the fraud, Charles Ponzi.
In 1920, Charles Ponzi discovered that the United States would redeem stamps from around the world at the US rate, even if the stamps were purchased more cheaply in European countries, like Ponzi's home country Italy.
He sold stamps to thousands of people leading them to believe that they could get great returns. He bought the stamps from relatives, then sold them to Americans, assuring them that they could then redeem them with profit.
The problem was that there were no where near enough stamps to accommodate all the thousands that wanted in on the deal. Ponzi did not want his clients to know that so he would pay out the initial investors with the money later investors gave him and hoped nobody would ask for a redemption.
As eventually happens with Ponzi schemes, people want their returns. Often this is provoked by a financial crises that has everybody running to get their money. Of course in a Ponzi scam, there is no money because the scammer was actually spending the money on a lavish lifestyle, giving back just enough to make people believe their investments were making money.
In the end Charles Ponzi defrauded investors of 20 million dollars (225 million in today's dollars).
His prison sentence? 12 years.
Cross devotes several chapters each to other scammers ending with the biggest, Bernie Madoff who defrauded his investors of 65 billion dollars.
Each chapter is a case study of the scammer, his particular investment, how he carried out the scam and his final fate. With the exception of Madoff who got a life sentence because of the publicity, most only got a few years in prison, even though they scammed people out of their life savings.
Ms. Cross also lists the signs of a scam and how they can be avoided. To simplify, if it's too good to be true, it is not true. Any investment that promises unrealistically high returns that over shadow any other investment is probably a scam. She admonishes investors to do their research and provides resources that help to learn the integrity of professional investors and also where to turn if you suspect that you have been the victim of an investment scam.
All of the book was highly informative and if she had stopped with what she knew it would have been a highly instructive book. Unfortunately she felt she had to make her dig against the capital market, pointing out the such scams can only happen where there is free enterprise because countries where governments control business, one will be free of fraud.
Right. Because socialist governments are comprised of people with sterling morals and capitalist governments produce politicians that are greedy goons. Human nature is apparently determined by government structure.
The final mistake Cross made was to predict the next big Ponzi scheme. She asserts that a 100-plus billion dollar Ponzi scam will take place during the next presidential election, on a Monday to be exact, November 14, 2016 to be even more exact in a New York hedge fund. It will be exposed by a rival hedge fund. He will be a highly respected man in his fifties, a lawyer or an accountant. And he'll be driving a Bentley.
Most of her prediction is unimpressive because with the exception of one woman, all the Ponzi scammers in her book meet her description so all she has done is create an amalgamation. The same goes for the type of investment fund.
Ms. Cross took her own gamble and lost. She wrote this book in 2013, and 2016 has come and gone. But hey, it could still happen.
At least I learned a lot about hedge funds, reverse engineering, and how former communist countries are the most vunurable to scams. Ioan Stoica defrauded 4 million Romanians out of 1 billion dollars in 1994 with his Caritas Company, mutual aid scheme. He even had commercials on TV promoting his wonderful "investment". One out of every five Romanians were greedy for high returns on their newly acquired money.
If one doesn't quibble over Ms. Cross' presumption over economic systems or her own fortune telling; if you are interested in the design of a Ponzi scheme and the sort of criminal minds that create them or if you'd like to understand how to avoid them, I would recommend this book.
In anatomy of a Ponzi, Colleen Cross endeavors to expose the world of investment scams to protect future victims and also hopefully create laws that provide more than a slap on the wrist to scammers.
The first section of the book is a general overview of the sort of mind that creates Ponzi scams. They share ten characteristics with psychopaths. In fact she calls them financial psychopaths:
1. Superficial Charm.
2. Grandiose Self-worth
3. Need for Stimulation, easily bored
4. Pathological liar
5. Manipulative
6. Lack of remorse
7. No emotional depth
8. No empathy for others suffering
9. Parasitic Lifestyle- lives off others money
10. Poor self-control
Hmm...reminds me of a man I once dated...
After giving the general description of Ponzi schemers she gives us the history of several from the past century, starting with the one who gave his name to the fraud, Charles Ponzi.
In 1920, Charles Ponzi discovered that the United States would redeem stamps from around the world at the US rate, even if the stamps were purchased more cheaply in European countries, like Ponzi's home country Italy.
He sold stamps to thousands of people leading them to believe that they could get great returns. He bought the stamps from relatives, then sold them to Americans, assuring them that they could then redeem them with profit.
The problem was that there were no where near enough stamps to accommodate all the thousands that wanted in on the deal. Ponzi did not want his clients to know that so he would pay out the initial investors with the money later investors gave him and hoped nobody would ask for a redemption.
As eventually happens with Ponzi schemes, people want their returns. Often this is provoked by a financial crises that has everybody running to get their money. Of course in a Ponzi scam, there is no money because the scammer was actually spending the money on a lavish lifestyle, giving back just enough to make people believe their investments were making money.
In the end Charles Ponzi defrauded investors of 20 million dollars (225 million in today's dollars).
His prison sentence? 12 years.
Cross devotes several chapters each to other scammers ending with the biggest, Bernie Madoff who defrauded his investors of 65 billion dollars.
Each chapter is a case study of the scammer, his particular investment, how he carried out the scam and his final fate. With the exception of Madoff who got a life sentence because of the publicity, most only got a few years in prison, even though they scammed people out of their life savings.
Ms. Cross also lists the signs of a scam and how they can be avoided. To simplify, if it's too good to be true, it is not true. Any investment that promises unrealistically high returns that over shadow any other investment is probably a scam. She admonishes investors to do their research and provides resources that help to learn the integrity of professional investors and also where to turn if you suspect that you have been the victim of an investment scam.
All of the book was highly informative and if she had stopped with what she knew it would have been a highly instructive book. Unfortunately she felt she had to make her dig against the capital market, pointing out the such scams can only happen where there is free enterprise because countries where governments control business, one will be free of fraud.
Right. Because socialist governments are comprised of people with sterling morals and capitalist governments produce politicians that are greedy goons. Human nature is apparently determined by government structure.
The final mistake Cross made was to predict the next big Ponzi scheme. She asserts that a 100-plus billion dollar Ponzi scam will take place during the next presidential election, on a Monday to be exact, November 14, 2016 to be even more exact in a New York hedge fund. It will be exposed by a rival hedge fund. He will be a highly respected man in his fifties, a lawyer or an accountant. And he'll be driving a Bentley.
Most of her prediction is unimpressive because with the exception of one woman, all the Ponzi scammers in her book meet her description so all she has done is create an amalgamation. The same goes for the type of investment fund.
Ms. Cross took her own gamble and lost. She wrote this book in 2013, and 2016 has come and gone. But hey, it could still happen.
At least I learned a lot about hedge funds, reverse engineering, and how former communist countries are the most vunurable to scams. Ioan Stoica defrauded 4 million Romanians out of 1 billion dollars in 1994 with his Caritas Company, mutual aid scheme. He even had commercials on TV promoting his wonderful "investment". One out of every five Romanians were greedy for high returns on their newly acquired money.
If one doesn't quibble over Ms. Cross' presumption over economic systems or her own fortune telling; if you are interested in the design of a Ponzi scheme and the sort of criminal minds that create them or if you'd like to understand how to avoid them, I would recommend this book.
January 17, 2014
This first venture into a non-fiction book by mystery author Colleen Cross offers a wealth of information on the top ten Ponzi and pyramid schemes that occurred over the last century. The principles of these financial frauds are explained in plain language that anyone can understand. The personal history provided on each major fraudster enables us to understand the thinking behind some of the biggest frauds in history, thereby adding a human perspective to these crimes. The author also includes tips on how to spot a fraudster and predicts when the next big Ponzi scheme will be revealed.
For anyone contemplating investments, this is a must-have book that provides valuable insight into the signs of a potential scam. A thought-provoking and helpful read!
For anyone contemplating investments, this is a must-have book that provides valuable insight into the signs of a potential scam. A thought-provoking and helpful read!
June 11, 2014
Shockingly real book!! I can't believe all these things are happening in our lifetime. This book is very informative and a reminder to not try to make money fast!
A must read!!
A must read!!
August 1, 2020
There is a value add in this book. Reading this book will allow you to understand how Ponzi schemes work and how to save yourself from a ponzi scheme. This book will allow you to understand a conman well in advance.
The author gives list of ten characteristics to look out for
1. Superficial Charm.
2. Grandiose Self-worth
3. Need for Stimulation, easily bored
4. Pathological liar
5. Manipulative
6. Lack of remorse
7. No emotional depth
8. No empathy for others suffering
9. Parasitic Lifestyle- lives off others money
10. Poor self-control
All the value add happens in the first few paragraphs, the rest of the book is only about case studies. Well told stories of very notorious Ponzi Schemers and their schemes. Each of them managed to find a very complicated and secret way of ripping people off their money! The stories are very impressive, and all of them prove the 10 traits that were told in the very first chapter, over and over again.
The book is a very good account of top ten scammers of all time and the way they did it.
The author gives list of ten characteristics to look out for
1. Superficial Charm.
2. Grandiose Self-worth
3. Need for Stimulation, easily bored
4. Pathological liar
5. Manipulative
6. Lack of remorse
7. No emotional depth
8. No empathy for others suffering
9. Parasitic Lifestyle- lives off others money
10. Poor self-control
All the value add happens in the first few paragraphs, the rest of the book is only about case studies. Well told stories of very notorious Ponzi Schemers and their schemes. Each of them managed to find a very complicated and secret way of ripping people off their money! The stories are very impressive, and all of them prove the 10 traits that were told in the very first chapter, over and over again.
The book is a very good account of top ten scammers of all time and the way they did it.
July 21, 2017
While I was on vacation I read "Anatomy of a Ponzi Scheme" https://www.amazon.ca/Anatomy-Ponzi-S... by Colleen Cross, Author If you haven't read it, so worth getting. I couldn't put it down and am going to re-read it, along with all the highlighted passages I need to take a close look at. It went beyond Madoff and detailed what to look for - and what the difference is between a Ponzi and a Pyramid and what to look for. It laid it out in really straight forward terms so I wasn't talking over (husband) when I insisted he listen to me quote from this book at night. In our hotel room. During our vacation (now isn't he the luckiest man?) BUT! the weird part is as I'm telling people about this book, how many people say they know someone who is already involved in one scam or the other. And they don't seem to care - bizarre!!! Anyways, worth the read - will really make you think and hopefully you don't already know someone involved in these.
March 5, 2020
This is a thoroughly researched, well-presented analysis and expose on the threat posed by Ponzi schemes and the people behind them. This investigative narrative leaves no stone unturned as Colleen Cross strives to inform and warn those who have an interest or stake in investments of any kind. She describes key Ponzi operations in a tone that oozes credibility, conveying facts with enough simplicity to illuminate and elucidate important details - and all the details are important - so that they can be readily understood. This is an essential tool for those who have invested money, or know of friends and family who have, as it offers a toolkit to negotiating the shark-infested waters of shady dealings. The narrator's performance of this audiobook was excellent and well-suited to the subject matter.
September 16, 2019
AUDIOBOOK REVIEW
If you have ever wanted to know what a Ponzi scheme actually is then this book is for you. A word of warning there is a lot of information crammed into this book and at times I felt I had to rewind it back to listen again to pick up all of the information. There is so much information in this book including a prediction on the next major Ponzi scheme to be discovered so it will be good to find out if the prediction is correct. There is more to this book that just Bernie Madoff and well worth a listen.
If you have ever wanted to know what a Ponzi scheme actually is then this book is for you. A word of warning there is a lot of information crammed into this book and at times I felt I had to rewind it back to listen again to pick up all of the information. There is so much information in this book including a prediction on the next major Ponzi scheme to be discovered so it will be good to find out if the prediction is correct. There is more to this book that just Bernie Madoff and well worth a listen.
January 21, 2019
3.5
This book is a decent overview of Ponzi schemes and the people who initiate these schemes. I was aware of the American-based Ponzi schemes, since they were all featured on American Greed (a good source of information if you want to learn more about Drier, Shapiro, Rothstein, Petters & Stanford).
This book is a decent overview of Ponzi schemes and the people who initiate these schemes. I was aware of the American-based Ponzi schemes, since they were all featured on American Greed (a good source of information if you want to learn more about Drier, Shapiro, Rothstein, Petters & Stanford).
June 21, 2019
I did not enjoy this book in the slightest. Not only does it drag on with largely repetitive information, but it contains the equivalent of a handful of Wikipedia pages. If you have any existing knowledge in regards to ponzi schemes then you are already beyond the scope of this book.
March 5, 2020
Loved the first half about the 10 biggest ponzi schemes. The other half bored me a bit
February 6, 2016
Make no mistake about it. Ponzi schemes are more prevalent and devastating than ever. That’s why I’m so pleased to see author Colleen Cross provide a comprehensive look at the topic, with useful tips on how to avoid investing with these persuasive con artists. She brings a clearer understanding of these schemes and a broad overview starting with Charles Ponzi (infamous for selling Florida swampland, among other things) and ending with more recent and larger fiascos such as Bernie Madoff’s $65 billion dollar debacle.
Cross describes how to recognize a Ponzi scheme. She even predicts when the next huge Ponzi scheme will be discovered. Trust me, it’s coming soon, but you’ll have to read the book to find out when. Anatomy of a Ponzi is a great reference for those who’ve heard of Ponzi schemes but don’t know what they are or how they differ from a pyramid scheme. She also dispels some common myths that all victims lose money due to greed. For instance, many of Madoff’s victims didn’t even know that their pension fund had found its way into his complex network.
Especially appealing is the style Cross uses to tell the story. Chapters that discuss a particular fraudster employ fictional techniques such as first-person POV and dialogue to introduce us to the men and women behind the schemes. From there, she switches to a nonfiction narrative style. It’s a great way to engage readers into stories about business strategies and numbers.
As some of these criminals’ stories are still ongoing, I would love to see an update and to learn about the latest exposed schemes. As Cross points out, though, there are simply far too few discoveries and convictions. Ponzi schemes are becoming increasingly sophisticated and more difficult to expose. Given the damage they’ve done, and will do, to millions of lives it’s pretty scary stuff. This book, however, will help you avoid what others could not.
Cross describes how to recognize a Ponzi scheme. She even predicts when the next huge Ponzi scheme will be discovered. Trust me, it’s coming soon, but you’ll have to read the book to find out when. Anatomy of a Ponzi is a great reference for those who’ve heard of Ponzi schemes but don’t know what they are or how they differ from a pyramid scheme. She also dispels some common myths that all victims lose money due to greed. For instance, many of Madoff’s victims didn’t even know that their pension fund had found its way into his complex network.
Especially appealing is the style Cross uses to tell the story. Chapters that discuss a particular fraudster employ fictional techniques such as first-person POV and dialogue to introduce us to the men and women behind the schemes. From there, she switches to a nonfiction narrative style. It’s a great way to engage readers into stories about business strategies and numbers.
As some of these criminals’ stories are still ongoing, I would love to see an update and to learn about the latest exposed schemes. As Cross points out, though, there are simply far too few discoveries and convictions. Ponzi schemes are becoming increasingly sophisticated and more difficult to expose. Given the damage they’ve done, and will do, to millions of lives it’s pretty scary stuff. This book, however, will help you avoid what others could not.
May 5, 2020
Brief but extremely informative. Some key takeaways:
It is likely that with the conditions presented by the coronavirus economy, it is very likely that the ponzi scheme the author was predicting would be exposed last year or the year before will be exposed this year. Ponzi scheme and pyramid schemes are different in key systematic ways (money distribution, recruiting activities, foreknowledge by investors, etc).
Something that occurred to me while the author was describing the precise qualities of a ponzi scheme? Most of the business world is some species of slow-burn Ponzi. The government is, more or less, one too.
It is likely that with the conditions presented by the coronavirus economy, it is very likely that the ponzi scheme the author was predicting would be exposed last year or the year before will be exposed this year. Ponzi scheme and pyramid schemes are different in key systematic ways (money distribution, recruiting activities, foreknowledge by investors, etc).
Something that occurred to me while the author was describing the precise qualities of a ponzi scheme? Most of the business world is some species of slow-burn Ponzi. The government is, more or less, one too.
October 9, 2019
Wow! What a great read!
I learned so much from this book. Fascinated me from beginning to end! I love the authors fiction stories and am blown away by the ability she has shown in this genre as well! The narrator was fabulous and led the reader on an informative adventure. I absolutely reconnect this!
I learned so much from this book. Fascinated me from beginning to end! I love the authors fiction stories and am blown away by the ability she has shown in this genre as well! The narrator was fabulous and led the reader on an informative adventure. I absolutely reconnect this!
October 27, 2014
If you research a subject, no matter what it is, then you can cobble together a book. This is what seems to have happened here. Ponzi is a well-known scam. This book doesn't add much to that except to itemise a number of scams.
May 20, 2020
Wonderful Book covering so many cases giving complete detail of modus operandi of Ponzi Scheme with its side effects and ways to identify in advance before you get in or it collapses. A must read.. :)
Read
November 13, 2013I am fascinated with this brilliant man, I'd luv 2 win/read this book
May 10, 2016
Great little read on the subject. Not a ton of new insights but there are some interesting things that make it worthwhile.
Displaying 1 - 18 of 18 reviews