This kind of scheme was first created and used in 1920 by its namesake, Carl Ponzi. From then on the 'Ponzi scheme' has become the mother lode and have been derived by many scammers. Different shills differently hoax clay pigeons. Cheapskates naively give to scammers a free rein of money. They merely chance on them from 'benefactions' by promising of extremely high returns or dividends over a very short period of time. Short period between payouts and high rate of return is required to create the shock for the frenzy that is to follow as word leaks out. And this soon verified by numerous sources. These scammers are known as "songbirds. "Profits" to investors are not created by the success of the exact business venture, but instead are derived fraudulently from the capital contributions of other investors and that is the classical technique used in a Ponzi scheme.