ABSTRACT
Few academics, regulatory, or law enforcement entities have attempted to differentiate the types of Ponzi schemes. It was only through the first year of researching Ponzi schemes that it became evident that there are different types of Ponzi schemes. The schemes that were intentional Ponzi schemes from the beginning and are coded in the data as “intentional.” Most Ponzi schemes did originate as intentionally designed frauds. The intentional Ponzi schemes are quite strategic. The perpetrators tend to be intelligent and well spoken, oftentimes described as friendly and charismatic. Affinity-fraud, also known as community-based fraud, Ponzi schemes might seem more egregious than others because the primary agent preys on people he or she has some self-designated affiliation with. A subset of affinity-fraud are those schemes that featured immigrants who were preyed by other immigrants of the same nationality. The common language and history bind individuals together; they are more trusting of those from their homeland.
