A Woman to Know: Sarah Howe
The Ladies' Deposit Company was established as a bank of women, by women, and for women. — Munsey's Magazine
(image via Boston Public Library)
Sarah Howe invented the Ponzi scheme before we knew it as the Ponzi scheme (which, by the way, is named for a man who didn't even run his scheme until 20 years after Howe ran hers).
In 19th century Boston, Howe socialized with high society women, offering them a chance to "get in" on the original "ground floor" of a female-led investment. She took money from these women and promised high-interest returns once they recruited others to contribute — you can guess what happened next.
From the April 25, 1881 issue of The New York Times:
Mrs. Sarah E. Howe, the manager of the notorious "Ladies' Deposit," the woman's bank paying 8 per cent. a month, which was broken up by the persistent newspaper exposures of its operations and their assaults, last Fall, was to-day, after a trial of comparatively short duration, found guilty on four counts of the indictment.
Add to your library list:
Fraud: An American History (Edward J. Balleisen)
Lying for Money: How Legendary Frauds Reveal the Workings of Our World (Dan Davies)
Read more:
The Great Swindlers (The Wall Street Journal)
The Women's Deposit Company (The New York Times)
The Ladies' Deposit: Created by Women for Ripping Off Women (io9)
A fool and his money are soon parted (Boston Public Library)
Depicting a Female Fraud: Sarah Howe and the Boston Women's Bank (Taylor Francis Online)
Hear more:
Notable Ponzi Schemes (How Stuff Works)
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