What is the ultimate goal of an individual perpetrating a Ponzi scheme?

The ultimate goal of an individual perpetrating a Ponzi scheme is to mislead investors for financial gain. In such schemes, the perpetrator entices investors with promises of high returns on their investments, using funds from newer investors to pay returns to existing investors. This creates the illusion of a profitable business, but in reality, the scheme relies on a continuous influx of new investment to sustain itself.

The primary motivation behind a Ponzi scheme is the fraudulent individual's desire to enrich themselves at the expense of others. Unlike legitimate investment strategies that aim to grow capital and benefit stakeholders, Ponzi schemes are inherently deceitful and unsustainable. Once the scheme collapses – which typically occurs when it becomes difficult to recruit new investors – the vast majority of participants are left with significant financial losses, while the perpetrator may have already taken substantial profits.

In contrast to options that focus on positive societal benefits, such as promoting financial literacy or investing in legitimate businesses, the Ponzi scheme serves only the interests of the fraudster, making it a classic example of financial crime driven by greed.