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Actually converting the IRCs into cash in any volume proved highly impractical. Ponzi was able to convince some of his friends that he could double their money in 90 days using the IRC scheme. From there the scheme snowballed, as investors begged Ponzi to take their money, which he was more than happy to do. The scheme collapsed after someone actually did the math, and calculated that Ponzi would have to have purchased million IRCs to produce the profits he claimed.

In reality, the Post Office Department could only confirm about 27, of the coupons were in circulation. Ponzi was arrested in August , and eventually spent three and a half years in prison on federal mail fraud charges.

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He served an additional seven years on state charges before being deported to Italy. He later emigrated to Brazil where he died in a charity hospital in , not knowing that his name would become synonymous with a type of fraud. Make sure they meet the requirements of Usps. Second, copy and paste the Usps.

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