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Introduction
George Goodman, a well-known financial journalist and novelist, achieved renown for his book “The Money Game,” which was a New York Times best seller. George Goodman was also known by his pen name, Adam Smith. Yet, Goodman was also a participant in a fraudulent enterprise that was known as “The Time Network” or EON Review. This article will investigate the specifics of the Ponzi scam, including how it was detected and the consequences that resulted from Goodman’s participation in the fraud.
Previous experience of George Goodman
George Goodman was a financial writer and novelist who published under the pen name Adam Smith. George Goodman used Smith as his pen name. He is the author of various books about money, one of the most successful of which is titled “The Money Game” and was released in 1967. The book received very positive reviews and is now regarded as a timeless classic on the subject of finance.
George Goodman was famous for his humor and his profound understanding of the business world. He appeared often as a pundit on financial news shows and had the respect of both individual investors and professionals working in the financial sector. But, despite his notoriety, George Goodman was participating in a dishonest plot that would stain his legacy. This will be a shameful admission on his part.
Ponzi scheme using the Time Network (EON Review)
George Goodman got engaged in a Ponzi scam in the middle of the 1970s that was known as “The Time Network” or EON Review. The plan was centered on the marketing of a product that was referred to as “time contracts,” and it guaranteed a significant return on investment to investors who purchased the product.
The time contracts were advertised to potential investors as a way for them to profit from investing in the future value of a commodity by purchasing the contracts. The contracts were offered for sale in increments of $10,000, and the return on investment was anticipated to be 20% annually for a period of 15 years. In fact, however, the contracts were worthless and were only utilized as a means of paying off previous participants in the plan.
Goodman was one of the most important people involved in the plan, and he promoted the time contracts by capitalizing on his standing as a respected financial writer. In addition to this, he enlisted the assistance of other journalists and those working in the financial industry.
Exposing the fraudulent plan
In 1976, a group of investors brought a lawsuit against George Goodman and the other organizers of the scam, which led to the scheme’s exposure. The investors said that they had been tricked into investing their money and that the time contracts were not worth anything.
In the end, the dispute was resolved amicably out of court, and George Goodman agreed to pay the court-ordered damages of $250,000. Nonetheless, the incident had a huge effect on Goodman’s image, and he was ultimately compelled to quit his post as a financial analyst as a result of the fallout.
Aftermath
The aftermath of the scam had a significant and long-lasting influence on the legacy of George Goodman. His participation in the plan masked his successes as a journalist and author, despite the fact that he continued to write and publish books on finance throughout this time.
In the years that followed the controversy, George Goodman grew more reclusive and retreated from the public glare. He also stopped giving interviews. He went away in 1996, when he was 68 years old.
Lessons Learned
The incident surrounding EON Review brings to light the dangers of Ponzi schemes as well as the need to do thorough research before making financial investments. Investors should always do their homework on the items they are putting their money into and be aware of claims that the investment will bring in great returns with little to no risk.
In addition, investors should exercise extreme caution before putting their money into items that have not been approved for sale by the relevant governing bodies or that are being sold by people whose credibility is in doubt.
Conclusion
The issue surrounding EON Review should serve as a lesson for investors and individuals working in the financial industry. It emphasizes the need for thorough research before investing and draws attention to the perils of Ponzi schemes. In spite of the fact that George Goodman’s reputation was damaged as a result of his participation in the plan, the significance of his legacy as a financial journalist and author will not be diminished. Yet, the controversy serves as a timely warning that even reputable personalities in the world of finance are not immune to being taken advantage of by dishonesty and fraud.
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