In the creation of a financial pyramid pleaded guilty 45-year-old Jason Nissen.
The Executive Director of the National Event Co., and last math teacher was attracted third-party funds, ostensibly to purchase tickets to concerts and sports matches, according to Bloomberg. Investors tempted by high interest rates, which the businessman promised to pay according to the results of the resale of tickets for events. Meanwhile, new deposits Nissen was calculated on old debts — exactly fraudulent Ponzi scheme.
Thus, the company is in wholesale of diamonds Taly USA Holdings Inc. provided for the purchase of tickets for Ultimate Fighting Championship , more than $1.9 million. However, of this amount, Nissen used for the intended purpose only $43 thousand and $1.5 million transferred to the personal Bank account and another $383 thousand, at the expense of another company.
In court, the fraudster admitted his guilt. Now he has to repay defrauded investors of about $70 million and to pay a fine of $250 thousand.
Separately need to talk about the Ponzi scheme. The name derives from its Creator — Italian Charles Ponzi, who emigrated in the early XX century in the United States. The idea to create a financial pyramid came to him after he received in the mail from one of the Spanish businessmen international reply coupon — thus carried the currency exchange. The ratio of exchange rates allowed good sell in USA coupons, bought in Europe.
Quirky Italian based company has issued debentures, which were pledged within 90 days to pay $1,500 each received $1000. The activity was held on the influx of new investors. In the summer of 1920 one of the contributors through the court demanded that the Ponzi 50% of the profits of his company. On the basis of the lawsuit the court has frozen its funds in Bank accounts. On July 26, Ponzi announced the suspension of accepting deposits in connection with tax inspection. It was a mistake: investors rushed to take money — and the pyramid soon collapsed.
