Top 10 Biggest Ponzi Scheme

Ponzi schemes are fraudulent investment schemes that promise investors outrageously high returns on their investments, but in reality are simply using the investments of new investors to pay off the returns promised to earlier investors. These schemes are called "Ponzi" schemes after Charles Ponzi, who became infamous for using this method to defraud investors in the early 20th century.

 

Here are the top 10 biggest Ponzi schemes in history:

TOP 1# Madoff Investment Securities

This massive Ponzi scheme, run by Bernie Madoff, defrauded investors of billions of dollars and was uncovered in 2008. Madoff was sentenced to 150 years in prison for his crimes.

TOP 2# Scott W. Rothstein

Florida lawyer Scott W. Rothstein ran a $1.2 billion Ponzi scheme that defrauded investors through his law firm. He was sentenced to 50 years in prison.

TOP 3# Scott W. Rothstein

Allen Stanford: Texas businessman Allen Stanford was convicted of running a $7 billion Ponzi scheme through his investment company. He is currently serving a 110-year prison sentence.

TOP 4# Tom Petters

Minnesota businessman Tom Petters was convicted of running a $3.65 billion Ponzi scheme through his investment company. He is currently serving a 50-year prison sentence.

TOP 5# Tom Petters

Arthur Nadel: Florida money manager Arthur Nadel was convicted of running a $350 million Ponzi scheme through his hedge fund. He is currently serving a 14-year prison sentence.

TOP 6# Robert Allen Stanford

This Ponzi scheme, which was not related to Allen Stanford mentioned above, defrauded investors of $8 billion. Robert Allen Stanford was sentenced to 110 years in prison.

TOP 7# Trevor Cook

Minnesota businessman Trevor Cook was convicted of running a $190 million Ponzi scheme through his investment company. He is currently serving a 25-year prison sentence.

TOP 8# Nicholas Cosmo

New York businessman Nicholas Cosmo was convicted of running a $179 million Ponzi scheme through his investment company. He is currently serving a 25-year prison sentence.

TOP 9# Nicholas Cosmo

Bernard L. Madoff: This Ponzi scheme, which was not related to Bernie Madoff mentioned above, defrauded investors of $17.5 billion. Bernard L. Madoff is currently serving a 150-year prison sentence.

TOP 10#Nevin Shapiro

Florida businessman Nevin Shapiro was convicted of running a $930 million Ponzi scheme through his investment company. He is currently serving a 20-year prison sentence.