Metaboston

Ponzi: Boston's Innovator of Financial Fraud

An apparent role model for alleged fraudster Bernie Madoff, Charles Ponzi joined the select group whose name has become immortalized in the language.

BU professor Mitchell Zukoff wrote Ponzi's biography and has been widely cited as people seek to understand the Madoff scandal

But, if you organize a Ponzi scheme what is your exit strategy if the scam can't be sustained and most don't last more than a year.

Some hope to disappear, some seem resigned to be caught and some intend to go straight and cover up the scam.

Most Ponzi schemes last a year at most, says Utpal Bhattacharya, an Indiana University finance professor. (Ponzi’s lasted just nine months.) So it seems likely that Mr. Madoff, an investment manager since 1960, started out legitimate or semi-legitimate. People in that position sometimes foolishly think they can hide a one-time loss with new investors’ money, and make up for it with a big gamble later.

In other words, Ponzi schemers don’t necessarily start out as such, and as sophisticated as they are, they may not consciously recognize that they have created one. They delude themselves into thinking the ploy is just a stopgap measure, an attempt to hide a loss until they can — once again — dream up something brilliant.

Cybervigilantism Snares Suspect in T Groping Case

Cybervigilantism seems to snares a suspect in a T groping case.  A high school student snapped a camera phone picture (left)  of a man who, teens taking the Green Line to school say, "has been targeting high school students on the train for nearly a year... groping and flashing young women."  And the result?  A Newton man has turned himself in to police following the release of the picture.  It will be interesting to see how the case develops.

NY Times on Boston Now

Old media giant the New York Times takes a look at upstart media venture Boston Now, a free newspaper given out at T stops and other commuter hotspots that intends to get its content from Boston bloggers.  Boston Now claims a current circulation of 85,000 but admits that it has not yet had a significant blogger presence in its paper.  Bloggers will retain ownership of their articles but will not receive financial compensation but may receive other incentives such as press credentials.  That could end up being a good enough tradeoff for many bloggers.

Harvard Crimson Hire Its Own Ombudsman

A recent trend in journalism, hiring an ombudsman to investigate issues of journalistic propriety and ethics, filters down to the college level as the Harvard Crimson hires its own ombudsman.  "Last year, The Crimson faced controversy over several accusations of plagiarism regarding cartoons and a column it published on its editorial page."  The Crimson decided to stay within the confines of the university when filling the position, selecting a first-year Harvard Law student who used to be a reporter.