In a stunning twist that surprised absolutely no one except apparently hundreds of investors, a Georgia CEO has been handed a crisp 20-year prison sentence for orchestrating what authorities are calling “likely the largest Ponzi scheme in Georgia history.” Which, given Georgia’s rich tradition of financial creativity, is genuinely saying something.
The executive, who apparently skipped the chapter in Business 101 where they explain that investment returns need to come from somewhere other than newer investors’ wallets, managed to pull off a scheme of truly historic proportions. Prosecutors were so impressed by the sheer scale of the operation that they felt compelled to give it the superlative it arguably deserved — a title that looks considerably less impressive on a résumé than one might hope.
For those unfamiliar with the Ponzi scheme business model (and congratulations to you for that), the concept works something like a financial game of musical chairs, except when the music stops, the only person with a seat is the guy who bought the record player with your retirement savings.
The CEO will now have approximately two decades to reflect on his career choices, network with other entrepreneurially-challenged individuals, and perhaps draft a business plan that involves an actual product or service. Prison economists everywhere are reportedly taking notes.
Investors, meanwhile, are left holding what financial experts technically refer to as “absolutely nothing,” a portfolio allocation that performs surprisingly poorly against the S&P 500 in most market conditions.
Authorities have not yet confirmed whether the title of “Largest Ponzi Scheme in Georgia History” comes with a trophy, but sources suggest the winner is currently unavailable to collect it.
*Source: UPI Odd News*
Original story via UPI Odd News
