Trading scams and big investment frauds have resulted in the loss of billions of dollars for gullible people. Here's a look at some of the world's biggest frauds.

Charles Ponzi

Charles Ponzi, an Italian immigrant to the United States, became one of the greatest fraudsters in America. The term 'Ponzi scheme' describes a scam that relies on a pyramid of investors who contribute money to a fraudulent programme.

Ponzi used to do odd jobs and would always end up being caught for some theft or forgery. In Canada, he worked for a bank where he forged signatures on cheques: he was sent to jail for 3 years. But this did not deter him from moving ahead.

He duped many people with a Ponzi scheme. Investors are attracted with promises of big returns. The returns were given to investors initially out of the money they invested.

Ponzi duped many investors in 1919 making them believe that investments in foreign postage coupons could yield 50 per cent returns in 45 days.

He said by selling cheaply bought coupons from abroad for huge amounts, investors could double their money in three months. Many working people who wanted to make more money in a short span of time joined the scheme. Soon many more people joined the conman on high hopes.

Ponzi was convicted of mail fraud in 1920 and was imprisoned before he was deported to Italy in 1934. He is aid to have died penniless in Rio de Janeiro in 1949.

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