Schemer's Guide to Not Getting Caught
Rule 1: Be a Charismatic Smiler
Smile, smile, smile! A good Ponzi scheme requires a charming smile and a firm handshake. Don't forget to wear a suit that says "trust me, I'm a financial wizard."
- Smile at least once a day
- Learn to nod your head at least 5 times a day
- Practice your "I'm a friend, not a scammer" face
Rule 2: Use a Convincing Pitch
Use words like "investment opportunity" and "low risk" to make your scheme sound legitimate. Don't forget to use a few buzzwords like "synergy" and "disrupt" to sound extra convincing.
- Use a PowerPoint presentation with at least 10 slides
- Learn to use a whiteboard to draw fancy graphs
- Practice your "this is a once-in-a-lifetime opportunity" monologue
Rule 3: Pay off Early Investors
Pay off the early investors first, so they can become your biggest cheerleaders. Don't worry about the math, just make sure to use a convincing story about how the numbers will "grow exponentially."
- Use a spreadsheet to make it look like you know what you're doing
- Create a fake audit trail with lots of fake numbers
- Practice your "it's all about the vision" speech
Rule 4: Be Prepared for the Inevitable Crash
When the scheme inevitably crashes, have a good alibi, a fake passport, and a nice lawyer on speed dial. Don't worry, it's all part of the process, right?
- Keep a stash of cash hidden in your basement
- Learn to make a convincing "it's not my fault" face
- Practice your "I'm going to a spiritual retreat to focus on my inner self" speech
© 2008 Bernard Madoff, Esq.