The Ponzi scheme
Charles Ponzi was an Italian immigrant who made a fortune out of lying to people. Even more, he was so good at it, that the government decided to name the type of fraud he invented: the Ponzi scheme.
Back in 1920, Ponzi managed to trick thousands of New England residents into putting their money in a postage stamp speculation scheme. He promised all his investors that he is able to provide a whopping 50 percent return in only 90 days.
Every time a new investor gave him money, he would use those funds to pay off earlier investors, which created an illusion that they were profiting from a legitimate business. He raked in $250,000 every day, which was about $3 million now.