He was more interested in instant gratification. Ponzi was the son of a fruit vendor and learned early that when someone put their nose to the grindstone, all they got was a bloody nose. In 1920, Ponzi devised a plan to make a fortune on "postal-union reply coupons." He discovered he could buy these coupons at depressed rates in foreign countries and sell them in the United States for a 50 percent profit. For Ponzi, the two months this process took was still too long, and he didn't have a large enough sum of money to build his fortune fast enough. Instead, Ponzi turned his sights to investors to provide him with financial backing for a promised return of 50 percent in two months.

Letters and money flooded into the Boston office and it was said that Ponzi had money stuffed in drawers, closets, and wastebaskets. He used the surge of money to pay off his first round of investors, who then told their friends, who then invested and got paid, and the cycle continued. In the summer of 1920, Ponzi was raking in around two million dollars a day!

It was a great scheme, but Ponzi's success was not as well received as one might imagine. A Massachusetts newspaper reporter decided to investigate Ponzi's background and found that he had a nasty criminal record, including indictments for forgery and smuggling. His pyramid quickly collapsed and he was unable to pay off his investors. When the financial matters were finally settled, Ponzi was more than ten million dollars in debt. It was estimated he had received and spent at least twice that amount. At the time of his arrest, he had an inventory of 200 tailored suits, 100 pairs of shoes, a litter of diamond tiepins, and a fortune in jewelry. He died penniless in 1949.

The Bottom Line: We just saved you a trip to the slammer!

1. Think of a commanding name for your new company that can inspire trust and respect from investors. Ponzi called his company the Securities & Exchange Commission.
2. Buy an expensive suit - dress to impress. Ponzi had over 200 tailored suits with every imaginable accessory.
3. Promise first-round investors double-digit returns and then deliver by paying your first round of investors off with money from a second round of investors. (This is called robbing Peter to pay Paul.)
4. Inflate your company's earnings to show that you are doing even better than expected. This will inspire more confidence. The money will keep coming in - ever heard of Enron?
5. Spend money openly. People have the idea that someone who looks successful is successful. Ponzi never missed a moment to spend his millions and neither should you because you might not have long to spend it.
6. Perhaps this is the most important step. When the police come knocking - call OJ's lawyers. In fact, have their numbers on speed dial.

Editor's Note:

All information portrayed in this article is satirical in nature and should not be taken as serious, or followed in any way to try and make a million dollars.