(As a disclaimer, these statistics are presented for educational purposes only, have not been independently verified, and were primarily compiled through articles on Ponzitracker and reporting on the internet by various sources including Kathy Phelps' monthly Ponzi roundups at ThePonziSchemeBlog.com. Individuals accused of Ponzi schemes are presumed innocent until proven guilty. These statistics generally only included Ponzi schemes of $1 million or more based in the United States. Please direct any comments or inquiries to inquiries@ponzitracker.com.)

2020 Ponzi Schemes

Around this time last year, I wrote about how the annual data compilation showed an “ominous 30% surge” in the number of Ponzi schemes uncovered in 2019 as well as the “highest total amount of investor funds at issue in nearly ten years.” Although one year certainly does not create or make a trend, the surge in 2019 stopped a multi-year downward trend and also raised questions about whether the ensuing year (2020) would see the numbers creep back up to levels not seen in nearly a decade.

In total, 46 schemes were uncovered in 2020, meaning that a new scheme was uncovered about once every eight days. Collectively, the 46 schemes represented roughly $1 billion in investor funds - down more than $2 billion from the $3.245 billion at issue in the schemes uncovered in 2019. Four of the schemes raised over $100 million each from victims, but the majority of schemes involved less than $10 million and resulted in an average scheme size of roughly $22.25 million - down over 60% from the $54 million scheme size seen in 2019. Nearly 1/3 of the accused Ponzi schemers called Florida or California home, but 2020 also saw smaller states like South Dakota, West Virginia, and Kentucky serve as home to an individual accused of a Ponzi scheme. One statistic that has remained remarkably consistent even in 2020? Men continued to make up nearly 90% of the accused Ponzi schemers.

The number of sentences handed down to convicted Ponzi schemers also saw a steep drop as courts grappled with closures and restrictions. Indeed, it appears that sentencing came to a halt during the middle of the year as the country employed strict measures to combat the pandemic. The data shows that there was a single sentence handed down during the period from March 1st to July 10th - the 25-year sentence imposed on radio host William “Doc” Gallagher (who called himself the Money Doctor) for his $20 million Ponzi scheme. The sentencings appear to have recently returned to the pre-COVID pace, but the total of 22 sentencings during 2020 mark a decade low..

A full database of uncovered Ponzi schemes and prison sentences for 2020 is below:

2020 Ponzi Scheme Sentences