Bloomberg is reporting that the SEC is investigating Chicago-based Wextrust Capital LLC and actually going after the executives personally, claiming they are operating a “Ponzi Scheme.” I had always wondered if Ponzi Schemes were illegal or not. I had been told that they were but this is the first time I’ve seen one prosecuted. The article defines a Ponzi Scheme as:

Operators of so-called Ponzi schemes use money from new investors to pay off old ones.

Funny, I thought that was basically the definition of Social Security. I hope the SEC moves against the Federal Government next. Not only is Social Security the biggest Ponzi Scheme on the planet, it employs forced participation.