Minister’s Message 6th October 2019
Who is interested in a Ponzi scheme?
A Ponzi scheme is a fraudulent investing scheme promising high rates of return with little risk to investors, but the money acquired is never really invested. The high returns are
generated by using the money acquired by new investors to pay early investors.
This fraudulent investing scheme is call a ‘Ponzi scheme’ because in 1920 (nearly 100 years ago) Charles Ponzi was convicted and imprisoned after defrauding investors of
approximately $20 million dollars, $256 million in today’s money, through the above means.
In a flurry of excitement people had thought they would get rich by investing with Ponzi and ended up losing everything.
A headline from a newspaper of back in that day could have read ‘Investors in Ponzi scheme demand answers!’ however that was the title of a news article I saw just recently. Reading that title, though I thought there really is only one answer to why they lost their money! Greed.
Firstly the greed of the person operating the Ponzi scheme, and secondly the greed of those who invested in it. In Luke 12:15 Jesus said “Take care! Protect yourself against the least bit of greed. Life is not defined by what you have, even when you have a lot.”
Investing isn’t wrong and one should never be defrauded by another, however as Christian’s we are wise to remember that our life is defined by our Saviour.
So invest wisely with your life and perhaps pray about what you do with your money.
Rev Michael Frost