Ponzi's Scheme by Mitchell Zuckoff

Author:Mitchell Zuckoff
Language: eng
Format: mobi, epub
ISBN: 9781588364487
Publisher: Random House Publishing Group
Published: 2005-03-08T10:00:00+00:00

When Ponzi arrived at 27 School Street, the adoring crowd he’d found a day earlier had been replaced by a larger, edgier horde, their bodies drenched in sweat, their eyes alive with dread and anger. Some carried the morning Post, its lead headline triumphantly predicting Ponzi’s demise and feeding investors’ fears: PONZI CLOSES; NOT LIKELY TO RESUME.

The story knocked into also-ran status the latest news of the America’s Cup races and a report that Pancho Villa was holding an American businessman for ransom. Below the story about Ponzi’s agreement to suspend business was the front-page announcement he had promised to buy:

PUBLIC NOTICE

I have made a personal agreement with District Attorney Pelletier to cease receiving funds from the public for investment with the SECURITIES EXCHANGE CO. 27 School St. Boston and all branches, until after an official audit is made to determine my solvency and satisfy him that my methods of financial operation are thoroughly legitimate. Meantime, I shall pay all maturing obligations as fast as presented. Further, during the auditing of the books any persons holding unmatured notes can receive back their original investment, without interest, if they desire. Signed, Charles Ponzi

Hundreds of people had assembled well before the opening hour of eight o’clock. When Ponzi arrived he could see there were no police officers in sight, the first time in weeks School Street had not enjoyed ample protection. Enraged, Ponzi suspected that the officials investigating him were hoping for a melee they could use as a pretext to shut him down for good. In the absence of the police, even the strong-armed Pinkertons seemed helpless to prevent the crowd from becoming a mob. Temperatures were climbing only toward the mid-seventies, but the crush of bodies made School Street the hottest block in Boston.

Ponzi stayed only a short time at his offices, relying on Lucy Meli and a corps of perhaps two dozen clerks and agents to issue the refunds. His workers had nothing better to do now that Ponzi had suspended taking new investments. Ponzi went around the corner to the Hanover Trust Company, holing up again in Chmielinski’s office and plotting his next moves.

He called Eddie Dunn, city editor of the Post, to complain about the “Not Likely to Resume” portion of that morning’s front-page headline. Neither Ponzi nor the prosecutors had said any such thing. It appeared that the Post was trying to speed his demise in order to claim his scalp. Ponzi was agitated. He did not know that Richard Grozier, the acting publisher, was directing the coverage from his father’s office, so Ponzi focused on Dunn. The city editor, Ponzi fumed, was “never letting me out of his sight and nothing less than a shower of buckshot would have discouraged him.” Ponzi told Dunn that the newspaper should watch its step or else he would “own its presses.”

At the moment, though, Ponzi had more urgent concerns. A lawyer for one of his investors had filed a motion in Suffolk County Superior Court seeking the appointment

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.