Skip to content
📬 Charles Ponzi

Charles Ponzi story -- Boston 1920 and the coupon claim

How Charles Ponzi's Securities Exchange Company collapsed in August 1920 after Boston Post reporting compared postal-reply-coupon markets with the cash he had taken.

The public story is short: a Boston promoter, a postal instrument, a newspaper that did the arithmetic, and a pair of criminal judgments.

The beats below follow the Post, the federal plea, and the Massachusetts larceny record.

Beats

  1. A promoter finds a story

    Ponzi, after earlier scrapes, advertised a coupon-arbitrage business from Boston and issued short-term notes at rates no ordinary bank could match.

  2. Money arrives faster than coupons

    Agents and word of mouth filled the office. The cash intake outran anything the international coupon market could have supplied.

  3. The Post prints the gap

    July and August 1920 articles, with Barron's coupon-market facts, made the mismatch a public document. A run followed the reporting.

  4. Surrender and federal plea

    Ponzi surrendered in August 1920 and pleaded guilty to mail fraud that November, receiving a five-year federal sentence.

  5. State larceny and a lasting name

    Massachusetts convicted him of larceny in 1925 after a hung first trial. English-language law kept the surname for the pattern.

The story on the public record is a completed 1920s prosecution and an etymology -- not an open question about hidden coupon warehouses.

Public-record encyclopedia. Not legal advice. Not a how-to. Graphic detail is withheld. Wars belong in a separate atlas.

Related cases