mentioned investment fraud in the financial sector, the majority of The four words “Ponzi scheme” will pop out of people’s minds. In China, the Ponzi scheme is also known as “demolition of the east wall to make up the west wall” or “white wolf with empty gloves”. In short, it is to use the money of new investors to pay interest and short-term returns to old investors in order to create the illusion of making money, thereby defrauding more investment. Many illegal pyramid schemes use this trick to amass money.
This kind of deception was “invented” by a speculative businessman named Charles Pounds. Charles Ponzi was an Italian speculator who lived in the 19th and 20th centuries. He immigrated to the United States in 1903. In 1919, he began to plot a conspiracy in which scammers invested in a virtual enterprise, promising that investors would get a 40% return on profits within 3 months. Then, the cunning Ponzi used the new investor’s money as a quick profit. Pay the initial investment to induce more people to be fooled. Due to the generous returns from the early investors, Ponzi succeeded in attracting 30,000 investors within 7 months. This conspiracy lasted for a year before sobering up people who had been dazzled by their interests. Later generations called it a “Ponzi scheme.”
And so on, the current Internet wealth management, crowdfunding, P2P risk events, all kinds of virtual currency scams under the guise of encrypted digital currency, the scallops on Zhangzidao 4 “escape” scandals in 6 years, all kinds of financial scams and traps, you just sing it. My appearance, major risk events even directly affect the stability of the financial market. Financial crimes have emerged in an endless stream, making ordinary residents unpredictable, so that some people ridicule: there is always a scam for you.
The reason why these scams can be established is that there are at least two parties involved. One is the “schemers” who claim to be extremely clever and play capital games in the palm of their hands; the other is an investor who has lost the most basic rational judgment in the face of interests. That is, the “entry”. Through a nuanced analysis of the “game makers”, this book deciphers the nature of financial frauds like Ponzi schemes, and warns those who “enter” or who may “enter”.
The author of this book is a world-renowned expert on financial fraud and crime. The book has a long history spanning across regions and cultures, covering markets such as securities, commodities, electricity, and carbon emission rights. It involves various hidden and complex criminal methods, especially those involving global criminal gangs, derivatives, and hedge funds. chapter.
The book begins with a transcript of interviews, reviewing and looking forward to the development of the financial market around the main line of financial crime activities, digging into the root causes of Wall Street financial crimes from the perspectives of moral hazard, mechanism design, and criminal organizations. The book focuses on the types of traditional financial crimes such as insider trading, Ponzi schemes, listing fraud, money laundering, and finally focuses on new types of financial crimes such as hedge fund crimes, emerging market crimes, and terrorist financing.
The author is well versed in the operating mechanism of financial institutions and financial markets. By analyzing major financial cases and deciphering financial traps, the author directly points to human weakness and mechanism design flaws, reveals the nature of its harm in depth, and does not lose the theoretical summary and model summary in the practical research. The author has a broad global perspective and is able to grasp financial crime organizations and types of crimes at his fingertips. Cases, models and interviews are available. They can combine qualitative and quantitative analysis. They have strong academic skills in mathematical modeling. The cases in the book are classic and pragmatic. The analysis of the scam is clear and coherent, the plot is fascinating, and it is extremely interesting and readable.
This book is easy to understand and easy to understand. It can be used as a reference material for financial regulatory authorities, business and risk control supervisors, and university teachers and students, as well as a necessary desk reading material for financial investors.
