Investors Panicked
When it was published, Clarence Barron’s inflammatory and critical article caused fear and panic amongst investors and huge numbers flocked to Ponzi’s office hoping to secure their money before the scheme collapsed. For several days in the summer of 1920, Ponzi was faced with crowds gathering in the street demanding explanations.
Rather than becoming flustered, Ponzi walked out to join the crowd. He passed out donuts and coffee and chatted amiably with the worried investors. He was forced to pay out over $2 million over three days, but the charming Italian was also able to convince many investors that they need not be concerned, and their money was safe with him.
