PONZI SCHEME: Charles Ponzi was the infamous Italian swindler who payed out returns with other investors' money. He had promised his clients profits of 50% within 45 days or 100% within 90 days. The 'Ponzi scheme' is named after him. Ponzi was arrested on August 12, 1920 and subsequently spent 14 years in prison. Ponzi spent the last years of his life in poverty and died in 1949.