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Our Fake History

Episode #243 - What Was Ponzi's Scheme? (Part II)

Our Fake History

PodcastOne

History, Education, Society & Culture

4.73.7K Ratings

🗓️ 27 January 2026

⏱️ 82 minutes

🧾️ Download transcript

Summary

Charles Ponzi's remarkable rise and fall played out over the course of a wild eight month period. He went from being a failed importer-exporter mired in debt to Boston's most talked about self-made millionaire in a matter of weeks. After rebranding his company as the Securities Exchange Company, Ponzi started offering remarkable 50% returns to investors after only 90 days. But almost immediately Ponzi's plan to use postal coupons to game international exchange rates became impractical. But, instead of grabbing as much cash as he could and making a dash, Ponzi believed he could transform his scam into a legitimate business. Was Ponzi ever really serious about going straight? Tune-in and find out how the America's nation menace, Babe Ruth, and guy named Get-Rich-Quick Wallingford all play a role in the story.

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Transcript

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0:00.0

In the world of fiction, there's a very ancient character type, sometimes called the lovable rogue.

0:14.1

This is a charmer, a trickster, or a rule breaker, who uses clever ruses, smooth words, and a winning personality to outwit his

0:23.6

adversaries and achieve his goals. In the most classic iterations, the lovable rogue usually

0:30.4

uses his deceptive talents for the good of his family or his community. Think of the wily Odysseus, finally ending the Trojan war with

0:41.9

the ruse of the Trojan horse. Or Robin Hood, thieving in Sherwood Forest to enrich the merry men. Or in his

0:50.8

more altruistic later renderings, robbing from the rich and giving to the poor.

0:57.4

We can find examples of lovable rogues in storytelling traditions the world over.

1:04.0

But every culture has a way of putting their own distinctive twist on this nearly universal character type. In American fiction, the twist on this nearly universal character type.

1:11.7

In American fiction, the twist on this ancient trope comes in the form of the tender-hearted con

1:19.9

artist. This character is usually a grifter whose main goal is to line his or her own pockets.

1:28.3

Despite the fact that this character is always a liar, a cheat, and driven entirely by greed,

1:34.3

there's usually something faintly redeeming in them.

1:38.7

In the 1973 blockbuster The Sting, Paul Newman and Robert Redford's characters use their grifting skills to swindle a violent

1:48.0

crime boss.

1:49.3

For the audience, the hero's underhanded tactics are entirely forgiven because the

1:54.3

mark seems to deserve his fate.

1:57.8

Then, of course, you have the charming con man, Harold Hill, from the beloved Broadway musical, The Music Man.

2:04.8

In the play, Harold Hill plans on running a classic splash, splash, cash, and dash scam on the unsuspecting town of River City, Iowa.

2:15.3

But famously, the love of the town's librarian and a growing affection for the young music students of River City keeps Hill from effectively making the dash.

2:27.6

When the music man first hit Broadway in 1957, the Harold Hill character was understood to be an update on another

2:36.6

classic American con artist. This was Get Rich Quick Wallingford. Now, old Get Rich Quick is not

2:46.6

as well remembered in the 2020s as Harold Hill, But in the 1920s, around the time that Charles

...

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