Launched on June 19, 2011, Ponzitracker is the result of the simple realization that no website exists to chronicle the increasing frequency and pervasiveness of the Ponzi Scheme. The market turmoil during 2007 - 2009 spared few, including those financial firms that promised extraordinary gains to unsuspecting investors that later turned out to be too good to be true. This site aims to provide transparency to those schemes.
A Ponzi Scheme can be thought of as a lagging indicator of economic malaise, in that decreasing market prospects increase investor redemption requests that cause the unraveling of the scheme when those requests deplete the funds needed to make regular distributions to investors. As a result of the severity of the recent financial crisis not seen in over a generation, an incredible amount of hedge funds and financial entities thought to be legitimate have instead become unmasked as simple Ponzi schemes.
Much has been made of the the schemes involving tens-of-billions of dollars of losses perpetrated by the likes of Bernard Madoff and Allen Stanford. Yet, for every one of these massive Ponzi schemes, there are tens or hundreds of much lesser severity that seem to be overlooked or ignored. But regardless of the size of the scheme, each still involves the deception of countless individuals and the total or near-total loss of principal. This website aims to provide the larger picture and the true pervasiveness of Ponzi schemes. For, regardless of the dollar amount, each scheme involves the loss of investor funds, the ever-increasing toll on those tasked to investigate such losses, and the decreasing confidence in the legitimacy and posterity of the financial markets.