Ponzi Scheme Safety Rules

By Bernard Madoff, Esq.

Disclaimer: Don't try this at home, kids.

Learn more about Schemer Etiquette Meet other Schemers

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."

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.

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."

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?

© 2008 Bernard Madoff, Esq.

Back to Schemer Etiquette

Schemer's Glossary

Here's a list of Schemer's favorite buzzwords:

Learn more about Legit Business Practices

Schemer Profiles

Here's a list of Schemers who have been known to use the Ponzi scheme:

Learn more about Legit Business Practices

Code

		# Ponzi Scheme in Python
		import math
		
		def ponzi_scheme():
			# Initial investment
			initial_investment = 100000
			# Return on investment
			return_on_investment = 10
			# Number of investors
			num_investors = 100
			
			# Calculate total return
			total_return = (initial_investment * return_on_investment) / num_investors
			
			print("Total return: ", total_return)
		
		# Print out a few examples
		print(ponzi_scheme())
		print(ponzi_scheme())
		print(ponzi_scheme())
		
		# Don't worry, I'll just move the money to my offshore bank account