Charles Ponzi: The Man Who Named the Pyramid Scheme [Parte I]

In order to shed some light on the face of Carlo Pietro Ponzi, we must resort, above all, to the written word. The encyclopedic entries and journalistic articles about our protagonist say that he was born in Lugo, Italy, in the year 1882, and tell in some length and detail the life of the Italian immigrant who became a millionaire in the United States. Even so, it seems that we are facing one of those cases in which, most of the time, a name is mentioned – Ponzi – without actually knowing who it is. audiovisual walking alongside this story. There was no Robert De Niro playing the man who, in the space of months, rose from rags to riches; on screens, everything about Charles Ponzi is elusive, second-rate, almost impossible to find. For when the great series, plus the reputed documentary, that project this fascinating figure worldwide?

The Almost Lost Autobiography

Why fascinating? Because, even after several readings, we still feel a certain difficulty understanding who Charles Ponzi really was and, above all, what intentions he would have. On the one hand, the association with an unscrupulous criminal will not be immediate, nor with the greedy psychopath Bernie Madoff, who used a Ponzi scheme to illicitly enrich himself, in the beards of Wall Street regulators; on the other hand, Carlo is also, from any perspective, a con artist. In an attempt to better understand this disconcerting figure, we delved into the most direct source we found: an autobiography that, itself, remained in the dark until very recently. When a larger edition of The Rise of Mr. Ponzi (“A Ascensão do Sr. Ponzi”, in a free translation, as there is still no Portuguese version), the subtitle only added to the intrigue: The long-suppressed autobiography of a financial genius. What are we left with: financial genius or mere thief? And, by chance, are these two views so antagonistic? Let’s postpone a summary judgment of the man to skim through the 27 chapters in which the author addresses himself as “Mr. Ponzi”. The titles of the chapters, by the way, are indicative of what will happen there: in some, Mr. Ponzi does this; in others, Mister Ponzi does that; for the most part, this and that happens to Mr. Ponzi.

Start with 200, arrive penniless

Apparently, or as he told the New York Times, Carlo descended from a family that once had been wealthy. Then there had been difficulties and lack of money. Still, Carlo had been around the university. Rich colleagues saw the course as a vacation and, even without money, Ponzi accompanied them to bars, theaters, cafes, operas. He spent everything he had. broke and without a straw, discovered in immigration an opportunity to get rich. He would do like so many others before him: he would travel to the United States, earn his fortune, return to Italy a rich man. The family, eager to recover the lost glory, encouraged him. According to his own account, Carlo left with 200 dollars in his pocket, his mother’s blessing and the preconceived idea that the streets of America were paved with gold. One person only had to reach down and grab it. Upon arrival, he had 2 and a half dollars left. The rest of the money? He lost it playing cards, during the ocean crossing, with a – probably cheating – professional gambler. Landed in Boston, penniless in his pocket, he was just another poor immigrant in search of the American dream; but Carlo assures him that he stood out from the crowd, as he was impeccably dressed from head to toe. In that fine apparel, he looked like a gentleman; a son of a wealthy family, coming for a walk. Even then, appearances were deceiving.

From land to land, to Canada

The road to fortune, after all, did not roll out to immigrants like a red carpet. Deceived by the cheater, with pennies in his pocket and his pride wounded, Ponzi earned a pre-purchased train ticket. In the autobiography, there are stories of hunger, cold, sleepless nights. The immigrant boy couldn’t speak English and therefore couldn’t get office jobs. And manage like the others, picking up whatever came along? “As a student and a man of weak physique, he was not cut out for manual labor.” But you had to live on something, and the young man spent four years moving around the city, between poorly paid jobs. He hated being a grocer, an insurance salesman, a sewing machine repairman; but all occupations served him to learn English. Let us introduce a dissonant note: it seems that Ponzi forgot, in his autobiography, to mention that some of his dismissals were due to petty theftsor the fact that he “wrong” to give his customers change… In any case, in July 1907, Carlo found himself to enter Canada. He had hit rock bottom: he arrived with no luggage and only a dollar bill in his pocket. But it would be in Monreal that luck would smile on him. As desperate as he was determined, he walked into the Zarossi Bank. Five minutes later, he found himself hired as a cashier; the bank owner, Louis Zarossi, had taken a liking to him. After so many years, Mr. Ponzi got a job he likedat an Italian bank whose clients were Italian immigrants.

Me, faker? I was framed, yes

Short-lasting sun. The bank began to have financial problems, the manager fled to Mexico, Carlo lost his job. Ponzi writes that Zarossi put him in charge of taking care of his wife and two daughters. Well then, Carlo moved with them to some furnished rooms and lo and behold, the 26-year-old, quite susceptible to the charm of girls (he says so), falls in love with the banker’s eldest daughter. She was 17 years old. Very pretty, she had also attracted the attention of an old classmate of Carlo’s. The love triangle formed, at least in Mr. Ponzi, to justify what was coming. The friend, in love with the girl, set a trap for him.A complaint related to check forgery would lead to Carlo’s arrest. In court, the judge sentences him. His friend had framed him out of envy. Another possible explanation? Well, maybe our Italian immigrant forged some checks, aware of what he was doing…

Mr. Ponzi ignores immigration laws

At the penitentiary of St. Vincent, Ponzi felt that he had gone from being a citizen to being a prisoner number. The lifeguard, however, made himself useful, accumulating clerical positions, ascending in the internal hierarchies, until he reached the anticipated pardon, attributed for good behavior. When he was free, some sources say that he started to dedicate himself to illegally cross immigrants to the United States. One day, they caught him. In his autobiography, Carlo reports what happened as a mistake. In the text and in court, he played innocent. He was simply going to the United States by train and had only acted as an interpreter for five Italian immigrants who did not speak English. Was permission needed to cross the border? He was unaware of the fact… Ignorance was of no use: he got two more years in prison. He fulfilled them in Atlanta. Carlo’s prose is full of asides in which Mr. Ponzi refers to the impact that these and other situations had on his being. Ideas about what life has been teaching him, in a harsh way and, in his view, very unfairly. A banker who ran away from being caught. A friend who betrayed him out of jealousy. A girlfriend who disappeared without saying a word. Maybe things were done that way, with cheating. Maybe he was in a long internship, in an apprenticeship to then deliver his own masterstroke. Read more: Greed is good, according to Gordon Gekko

Rose, the American beauty

But before that, a rose without thorns crossed his path. In July 1912, Mr. ponzi saw himself again as a free man, albeit with a record. “They showed no intention of deporting me.” Decent jobs followed, problems, shenanigans, layoffs, elopements, new cities, a hurricane in New Orleans. This turbulent ride would have a happier chapter in Wichita Falls. At 35, Charles knew Rose. In his book, he confesses to having been love at first sight. Someone introduced them. They talked a little. They said goodbye. Later, he was asked what he thought of the girl. “I think she’s wonderful,” Ponzi replied. – I’m going to marry her. – You must be crazy! – exclaimed the lady who had introduced them. – And I am! I’m crazy about that girl!” Charles had found her American beauty in Rose. Eight months later, the two were married.[continua em Charles Ponzi – parte II]Also Read: Bernie Madoff: A Tragedy Worthy of Shakespeare Paulo M. Morais grew up playing street football and listening to proverbs told by his grandmothers. He graduated in Social Communication and specialized in the areas of cinema, videogames and gastronomy. He is the author of novels and non-fiction books. He collects board games and continues to watch many movies. He likes to cook, look at the sea, read. The information contained in the article is not binding and does not invalidate the full reading of documents that support the matter in question.