When one looks at the history of Ponzi Schemes swindling Canadian people’s hard earned money, two names come readily to the mind. Earl Jones was the first one to commit this fraud followed by Gary Sorenson in the recent past. A small percentage of the Canadian Population got attracted by the huge returns promised by the so called investment experts like Jones and Sorenson. Even in the United States, people were unaware of this scheme till Bernie Madoff ponzi scheme came to the fore.
Some people might not be aware of this Ponzi scheme. These are schemes run by a group of people or an individual giving returns to the newer investors using the money invested by the earlier investors. When a new investor invests $ 1000, they would be given a return of 25 % that is $ 250 using the investment made by the earlier investors. In order to be on the safer side, these ponzi scheme experts tried to extend the term of the scheme to 10 or 15 years. This would give them sufficient breathing time to plan an escape route before the principle needs to be returned to all the investors. But unfortunately, the falling economy made the investors to demand their money even before the tenure ended, which led to the fall of the ponzi experts in Canada.
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