How Scams, Fraud, and Con Schemes Worked in the 1920s

The Roaring Twenties (1920s): A Decade of Quick Riches, Dazzle and Deception in Frauds, Scams, and Con Games

The 1920s, often dubbed the Roaring Twenties, were marked by economic prosperity, technological advancements, and a cultural shift towards modernity. Amidst the jazz, flappers, and speakeasies, a less glamorous narrative unfolded, one of financial deceit and elaborate Frauds, Scams, and Con Games. This era, characterized by its unbridled optimism, became fertile ground for con artists who exploited the public’s desire for quick wealth.

The Allure of Quick Riches

In the years following World War I, the United States entered a period of extraordinary optimism and economic expansion. Industry surged, wages rose, and consumer confidence reached unprecedented levels. Americans, flush with new opportunities and emboldened by modern technology, began to believe that financial success was not just possible, but inevitable. This mindset laid the foundation for a cultural climate that prized ambition and admired risk, often at the expense of caution.

The rapid emergence of innovations such as radio, automobiles, electrical appliances, telephony, and aviation reinforced this outlook. These technologies were not only changing the American way of life, they were creating new markets, new millionaires, and endless headlines about transformative inventions and bold entrepreneurs. Henry Ford became a symbol of industrial genius, while Charles Lindbergh’s transatlantic flight was seen as proof that audacity could yield greatness. The public was primed to believe that fortune favored those who acted quickly and boldly.

This faith in progress, combined with an expanding credit system, opened the door for a wave of speculative investment and entrepreneurial adventurism. People were encouraged to “get in early” on the next big thing, whether that meant buying shares in a radio manufacturer or putting money into Florida land deals. Brokers and promoters capitalized on the widespread belief that wealth could be achieved through instinct and initiative, rather than patience or due diligence.

Historian Edward J. Balleisen, a scholar of business fraud, has pointed out that such frontiers of capitalist innovation have always attracted con artists. When the financial system becomes more accessible and the boundaries of new markets are unclear, it becomes easier for fraudsters to fabricate credibility. The 1920s provided this perfect storm of conditions. Credit was easier to obtain, regulatory oversight was limited, and the cultural appetite for success had never been stronger.

In this environment, investment schemes flourished—not only because they promised high returns, but because they fit the narrative of the time. People did not see themselves as victims of manipulation. They believed they were visionaries taking part in the American dream. Fraudsters knew this, and they shaped their stories accordingly. They offered opportunities that sounded just plausible enough and always urgent enough to demand immediate action.

These schemes worked not in spite of public confidence, but because of it. The more people believed in the promise of modern capitalism, the more they opened their wallets to men who claimed to offer a shortcut to its rewards. The economic optimism of the 1920s did not just create wealth. It created the perfect cover for deception.

Prominent Examples of Con Schemes from the 1920s

Roaring Twenties Scams Beyond the Usual Suspects

The 1920s were awash with get-rich-quick schemes and bold cons far beyond the famous cases of Charles Ponzi or the Florida land boom. Scammers preyed on the era’s speculative fervor, technological marvels, health fads, and even political movements. Below are several notable frauds and con schemes from the 1920s, ranging from fake engineering feats and medical miracles to political and corporate swindles, each richly documented in historical records or modern analyses.

The Black Star Line: Dream Investment Turned Fraud

Stock certificate for Marcus Garvey’s Black Star Line (BSL), a steamship company that sold $5 shares to thousands of African-Americans in the early 1920s. The enterprise was fraught with mismanagement and deceit. Garvey was later convicted of mail fraud for false claims made in these stock solicitations.

Amid the Harlem Renaissance and “New Negro” movement, Marcus Garvey became a prominent figure by promoting Black economic independence and a return-to-Africa vision. Central to his program was the Black Star Line, a steamship company founded in 1919 under the auspices of Garvey’s UNIA (Universal Negro Improvement Association). The idea inspired hope: a Black-owned shipping line would facilitate trade with Africa and eventually transport people of the diaspora to and from the Motherland. To fund this vision, Garvey embarked on an ambitious stock-selling campaign, urging Black Americans to invest in BSL at $5 a share – an affordable price meant to democratize ownership. Thousands heeded the call. Garvey’s stirring oratory and nationalist fervor helped BSL raise hundreds of thousands of dollars from hopeful investors.

Tragically, the Black Star Line became a case study in mismanagement and false promises. Garvey and his team knew next to nothing about the maritime business. They used the invested capital to buy old, unreliable ships – “terrible business decisions,” as one historian put it bluntly. The first ship, the Yarmouth, was a leaky 33-year-old vessel that broke down immediately; another purchase, the Kanawha, turned out unsuitable; the Shadyside was an aging excursion boat Garvey bought for far above its value. Despite these setbacks, the UNIA’s marketing was full of inflated claims. In 1920, BSL’s newsletter and mailers touted plans for new ships and international routes even as the company was floundering. The U.S. government (and rival Black leaders critical of Garvey) took notice. In 1922, federal investigators charged Garvey with mail fraud, pointing to a particular solicitation for a ship, “Phyllis Wheatley” – a ship BSL did not actually own. The circular implied the vessel was already part of the fleet, which was false; BSL hadn’t acquired it (they were still searching for such a ship).

After a controversial trial, Garvey was convicted in 1923 on the mail fraud count. While some argued he was politically persecuted (indeed, J. Edgar Hoover’s FBI had zealously pursued him, and many of Garvey’s opponents testified), the fact remained that investors in the Black Star Line lost most of their money. The line was essentially bankrupt by late 1921, its ships in disrepair or underperforming. Garvey was sentenced to five years in prison (serving about three) before President Coolidge commuted his sentence in 1927, followed by deportation to Jamaica.

The Black Star Line episode is a poignant example of a 1920s investment scheme fueled by idealism and ended by fraud. Garvey had inspired ordinary people to buy into a grand dream, but delivered little beyond rhetoric. Modern historians note that BSL’s failure was due in part to incompetence and inexperience, but also undeniably to deceptive fundraising. One court later flatly described the Black Star Line as “a fraudulent mechanism” that was used to solicit money under false pretenses. For the hopeful investors, it was a bitter lesson that even within a just cause, scammers and dreamers can sometimes be one and the same.

Charles Ponzi: The Eponymous Schemer

Charles Ponzi, an Italian immigrant, became synonymous with fraudulent investment schemes. In 1920, he promised investors a 50% return in 45 days by exploiting international postal reply coupons. In reality, Ponzi paid returns to earlier investors using funds from newer ones, without any legitimate profit-generating activities. At the height of his operation, he amassed over $15 million from approximately 40,000 investors. His scheme collapsed when federal authorities intervened, leading to his imprisonment and eventual deportation.

Leo Koretz: Chicago’s Illusory Oil Magnate

Leo Koretz, a lawyer from Chicago, orchestrated a Ponzi scheme that predated Ponzi’s own. He enticed investors with promises of lucrative returns from non-existent timberland and oil fields in Panama through his Bayano River Syndicate. Operating for over a decade, Koretz swindled millions before fleeing to Canada. His deception unraveled when he was discovered living under an alias and subsequently extradited back to the United States.

C.C. Julian: The Oil Promoter of Los Angeles

Courtney Chauncey “C.C.” Julian capitalized on the 1920s oil boom in Southern California. He attracted thousands of investors by selling shares in oil ventures, often exaggerating the potential returns. Julian’s flamboyant advertising and charismatic persona masked the fraudulent nature of his operations. As legal pressures mounted, he fled to China, where he ultimately took his own life in 1934.

Florida Land Boom: Paradise Sold on Paper

The 1920s saw a real estate frenzy in Florida, driven by aggressive marketing and speculative investments. Promoters sold land parcels, often sight unseen, to eager buyers nationwide. Many of these plots were submerged or inaccessible, leading to widespread financial losses when the bubble burst. The collapse was exacerbated by natural disasters and the eventual onset of the Great Depression.

Quack Medicine Miracles: Dr. Brinkley’s Goat Glands

The 1920s also witnessed brazen frauds in the realm of health and medicine. One infamous medical con man was Dr. John R. Brinkley, who earned fortune and fame by peddling an outlandish “rejuvenation” cure: transplanting goat testicles into men to restore vigor. Brinkley had no legitimate medical credentials – he bought a diploma from a dubious diploma mill – yet he opened a clinic in Milford, Kansas and began performing his goat gland surgery on paying patients around 1918. The procedure was pure quackery (and often dangerous), but Brinkley was a charismatic marketer. By the 1920s, he had duped hundreds of men into the surgery, charging hefty fees (about $750 per operation – over $15,000 in today’s dollars). Satisfied (or placebo-effected) customers spread the word, and newspapers eagerly reported fantastical stories – including, famously, a baby supposedly born to a couple after the impotent father underwent Brinkley’s goat-gland graft.

Brinkley leveraged the era’s new media to extend his reach. He was an early adopter of radio advertising – in fact, he built one of the most powerful radio stations of the time to hawk his services and other patent medicines. His radio broadcasts made him a household name throughout the Midwest and South. Flush with cash, Brinkley lived lavishly and even launched populist campaigns for governor of Kansas (nearly winning in 1930 as a write-in candidate). All the while, authorities and the medical establishment grew increasingly alarmed. Eventually, Brinkley’s empire crumbled: medical boards revoked his license, the AMA exposed his treatments as fraudulent, and multiple malpractice and wrongful death lawsuits piled up. It’s estimated dozens of patients died from infections or complications of his goat gland surgery. By the early 1930s Brinkley was essentially discredited – a cautionary tale of how easily pseudoscience could flourish in the Roaring Twenties. (For all his audacity, Brinkley died penniless in 1942, his fortunes wasted and his medical claims debunked.)

Radioactive “Cure-All” Tonic: Radithor and the Jawbone of Death

If goat glands weren’t shocking enough, the 1920s also brought us Radithor, a patent medicine loaded with radioactivity. Radithor was marketed as “Certified Radioactive Water” – each little bottle guaranteed to contain at least 1 microcurie of radium (Ra-226 and Ra-228) in triple-distilled water. Its maker, William J. A. Bailey of New Jersey, claimed Radithor could cure a host of ailments and insisted it was “harmless in every respect”. In reality, it was slow poison. For a price of about $1 per bottle, customers were ingesting dangerous levels of radium, a radioactive element that accumulates in bones.

The most famous victim of this fraud was Eben Byers, a wealthy industrialist and champion golfer. After an arm injury in 1927, Byers began drinking Radithor as a supposed energizer and remedy, on his doctor’s recommendation. He reportedly drank about three bottles a day for over two years, swearing by the tonic’s invigorating effects. By the time the horrific truth became apparent, Byers had consumed an estimated 1,400 bottles. In 1930, his health collapsed. Radium had been eating him from the inside: Byers’ bones were disintegrating; his teeth fell out, and his upper jaw and skull developed holes as the bone tissue decayed. He suffered incessant pain and had to undergo radical surgery to remove parts of his jaw. Eben Byers died in 1932 at age 51, and the sensational details of his demise – “The Radium Water Worked Fine until His Jaw Came Off,” blared one headline – received wide media coverage.

Byers’s death was a turning point. It provided unequivocal evidence that Radithor was lethal, prompting belated intervention by regulators. The Federal Trade Commission finally ordered Bailey’s company to cease all false claims and stop selling Radithor by the end of 1931. The public was alerted to the dangers of radioactive quack cures, and the Radithor scandal became an impetus for stronger drug safety laws in the 1930s. Radithor stands as a ghastly example of 1920s health fraud, in which modern science (radium, a cutting-edge discovery) was misused as a snake-oil selling point, with deadly consequences.

The Radio Pool: Manipulating the Airwaves

The advent of radio technology spurred investor enthusiasm, particularly in companies like the Radio Corporation of America (RCA). A group of speculators formed the “Radio Pool,” artificially inflating RCA’s stock price before selling off their shares at a profit. This manipulation left ordinary investors with significant losses when the stock’s value plummeted.

Denver’s “Big Store” Con: Lou Blonger’s Crime Syndicate

Not all 1920s swindles were headline-grabbing national scandals – some were local operations that flourished in the shadows. In Denver, Colorado, a veteran con man named Lou Blonger ran an immense network of confidence tricksters, perhaps the last of the old Wild West-style con gangs. By the early 1920s, Blonger was known as the “King of the Denver Underworld,” reputed to “own” the city through his political protection rackets. His gang specialized in the “big store” con, a complex setup with fake brokerage offices or betting parlors designed to fool marks into believing they could score a big payday. Blonger’s operatives would outfit an office with ticking ticker-tape machines and chalkboards, pose as successful brokers or bookies, and lure wealthy travelers or naive investors into a scheme, often a rigged stock tip or horse racing bet. The mark would be enticed to put up a large sum of cash to secure a supposed windfall, only to have the con men disappear with the money. This is the very type of elaborate scam later immortalized in the Hollywood film The Sting, and Blonger did it for real decades earlier.

By 1920, Lou Blonger’s ring was raking in thousands of dollars and operated with impunity – Denver’s police chief was literally on Blonger’s payroll, even installing a private phone line on Blonger’s desk for tip-offs. The law eventually caught up with him in dramatic fashion. In 1922, an honest district attorney, Philip Van Cise, organized an undercover citizen task force (deliberately excluding the bribed police) to infiltrate and bust the Blonger gang. In a sweeping raid, 33 con men were arrested, including Lou Blonger himself and his chief assistant. The subsequent trial in 1923 was highly publicized – a spectacle of betrayed trust and civic corruption. Blonger, then in his 70s, was convicted and sentenced to up to 10 years in prison. He died behind bars in 1924, marking the end of an era. The Blonger case showed that even in the modernizing 1920s, old-fashioned street cons and fixed betting-room swindles could still thrive, at least until determined lawmen shut them down.

Selling the Eiffel Tower: Victor Lustig’s Audacious Con

Victor Lustig famously “sold” the Eiffel Tower for scrap metal – not once but twice – in 1925. Posing as a government official, he convinced a Parisian scrap dealer to pay him 70,000 francs (including a hefty bribe) for the landmark, then absconded with the cash. Lustig counted on the victim’s embarrassment to keep the authorities in the dark, and indeed, the con went unreported. Buoyed by success, he even tried to sell the Eiffel Tower a second time to another group of scrap merchants; that attempt exposed the scam and forced him to flee France. Lustig’s creativity didn’t end at Parisian landmarks. He was also the mastermind of the so-called “Rumanian Box” or money-printing machine scam. In this grift, Lustig would demonstrate a mahogany box that supposedly duplicated currency: insert a real banknote and blank paper, wait six hours, and a perfect copy emerged. By pre-loading the box with genuine notes, he convinced the marks that it worked and sold these “money boxes” for exorbitant sums. One Texas sheriff, after paying thousands, chased Lustig down in anger, only to be duped again when Lustig paid him off in counterfeit bills. By the late 1920s, Lustig was wanted on both sides of the Atlantic for countless frauds. He was eventually caught and sentenced to 20 years, cementing his legacy as one of the era’s most notorious con men

Teapot Dome: Oil, Bribery and Political Corruption

Not all cons of the 1920s targeted private investors; some reached into the highest levels of government. The Teapot Dome Scandal was a massive political swindle during President Warren G. Harding’s administration, involving secret bribes for oil leases on federal land. At the center was Secretary of the Interior Albert B. Fall, who in 1921 quietly arranged to lease the U.S. Navy’s strategic oil reserves at Teapot Dome (Wyoming) and Elk Hills (California) to two private oil barons – Edward L. Doheny and Harry F. Sinclair – without competitive bidding. The deals were made under the guise of emergency preparedness, but in reality, Fall had been bought. In early 1924, a Senate investigation exposed that Fall had received roughly $400,000 in “loans” and outright bribes from the oilmen. Doheny admitted he personally sent his son with a satchel containing $100,000 in cash to Fall as a loan, and investigators traced an additional transfer of $300,000 in bonds and cash to Fall’s family from interests linked to Sinclair. These were enormous sums at the time (indeed, Fall went on a ranch-buying spree), and in exchange, the oil companies reaped untold millions in profit from the no-bid leases.

The Teapot Dome revelations shocked the nation, becoming the biggest American government scandal up to that point. Harding’s administration (the “Ohio Gang”) was already tainted by other graft, but Teapot Dome was unprecedented. Ultimately, Albert Fall was convicted of accepting bribes, making him the first U.S. Cabinet official in history to go to prison for corruption. In 1929, he was fined $100,000 and sentenced to one year in jail (a rather light sentence relative to the crime). Though Doheny and Sinclair avoided jail for the bribery itself (Doheny was acquitted of offering the bribe, and Sinclair served a short sentence for contempt and jury tampering), the damage to public trust was done. Teapot Dome became synonymous with government cronyism and pay-to-play corruption. Its legacy was empowering Congress to more aggressively investigate and oversee government officials. Until Watergate in the 1970s, Teapot Dome was the go-to example of high-level fraud in American politics.

The Top 100 Scams, Fraud, and Con Schemes from the 1920s

1. Ponzi Scheme (Charles Ponzi): Charles Ponzi defrauded investors of $15 million by promising 50% returns in 45 days through postal coupon arbitrage, paying early investors with new investors’ funds until the scheme collapsed in 1920.
2. Bayano Syndicate Scam (Leo Koretz): Leo Koretz swindled investors by selling shares in a fictitious Panama timber and oil venture, claiming 60% annual returns, using new investments to pay dividends until fleeing in 1923.
3. Radio Pool Stock Manipulation: Wealthy investors artificially inflated RCA stock prices in the 1920s, selling at peaks and leaving small investors with losses when prices crashed.
4. Bucket Shop Fraud: Brokers in bucket shops accepted bets on stock prices without executing trades, pocketing clients’ money when speculative stocks failed, a common practice in the 1920s.
5. Fake Oil Well Investments: Promoters sold shares in nonexistent Texas oil wells, luring investors with promises of massive profits during the 1920s oil boom, then absconded with funds.
6. Real Estate Swampland Fraud: Con artists sold worthless Florida swampland to northern investors, marketing it as prime development property during the 1920s land boom.
7. Fake Mining Stocks: Fraudsters issued stocks for nonexistent gold or silver mines in the West, capitalizing on the 1920s mining speculation frenzy, leaving investors with worthless shares.
8. Chain Letter Schemes: Organizers encouraged participants to send money to the top of a list, promising exponential returns, but most participants lost money in these 1920s pyramid schemes.
9. Patent Medicine Fraud: Hucksters sold ineffective or harmful “miracle cures” for ailments, exploiting lax regulations and public trust in the 1920s.
10. Fake Franchise Scams: Con artists sold rights to nonexistent or unprofitable business franchises, targeting aspiring entrepreneurs with false promises of wealth in the 1920s.
11. Stock Pool Manipulation (Chrysler): Insiders drove up Chrysler stock prices through coordinated buying, selling at inflated values, and leaving public investors with losses in the 1920s.
12. Boiler Room Stock Sales: High-pressure salespeople used telephones to push worthless stocks, misleading investors with exaggerated claims in the 1920s.
13. Counterfeit Bond Schemes: Fraudsters sold fake corporate or government bonds, convincing investors of their legitimacy during the 1920s investment craze.
14. Fake Charity Drives: Scammers solicited donations for nonexistent charities, exploiting public generosity during the prosperous 1920s.
15. Advance-Fee Loan Fraud: Con artists charged upfront fees for promised loans that never materialized, targeting desperate borrowers in the 1920s.
16. Fictitious Utility Company Stocks: Promoters sold shares in nonexistent electric or gas companies, capitalizing on the 1920s electrification boom.
17. Bogus Aviation Ventures: Fraudsters sold stock in fake airplane manufacturing firms, exploiting excitement over aviation advancements in the 1920s.
18. Phony Radio Company Stocks: Con artists issued shares for nonexistent radio firms, riding the 1920s radio technology wave to deceive investors.
19. Mail Fraud Lotteries: Organizers sent letters promising lottery winnings for a fee, delivering no prizes and exploiting postal systems in the 1920s.
20. Fake Land Development Schemes: Promoters sold plots in undeveloped or nonexistent subdivisions, marketing them as future cities during the 1920s real estate boom.
21. Pyramid Investment Clubs: Organizers recruited members to invest in clubs promising exponential returns, collapsing when recruitment slowed in the 1920s.
22. Fraudulent Stock Tips: Brokers sold newsletters with fake stock tips, manipulating prices for profit while misleading subscribers in the 1920s.
23. Bogus Patent Investments: Con artists sold shares in unpatented or worthless inventions, exploiting the 1920s innovation craze.
24. Fake Railroad Stocks: Fraudsters issued shares in nonexistent railroad companies, capitalizing on the 1920s transportation expansion.
25. Sham Banking Ventures: Con artists established fake banks, collecting deposits before disappearing with funds in the 1920s.
26. Fictitious Timber Investments: Promoters sold shares in nonexistent lumber operations, targeting investors during the 1920s construction boom.
27. Bogus Film Production Scams: Con artists sold investments in fake movie projects, exploiting the 1920s Hollywood craze.
28. Fake Insurance Policies: Fraudsters sold worthless insurance contracts, leaving policyholders unprotected in the 1920s.
29. Phony Export-Import Firms: Con artists solicited investments in fake international trade companies, promising high returns in the 1920s.
30. Fraudulent Cattle Ranch Investments: Promoters sold shares in nonexistent ranches, targeting investors during the 1920s agricultural speculation.
31. Bogus Commodity Futures: Brokers sold fake contracts for grain or cotton futures, pocketing funds without executing trades in the 1920s.
32. Fake Royalty Scams: Con artists posed as European nobles, soliciting investments for fictitious ventures in the 1920s.
33. Sham Real Estate Syndicates: Promoters sold shares in fake property development groups, exploiting the 1920s real estate frenzy.
34. Fraudulent Stock Dividends: Companies issued fake dividends to inflate stock prices, deceiving investors in the 1920s.
35. Bogus Financial Advisors: Self-proclaimed experts charged fees for worthless investment advice, misleading clients in the 1920s.
36. Fake Stock Exchanges: Con artists operated sham exchanges, selling worthless securities to unsuspecting investors in the 1920s.
37. Phony Construction Bonds: Fraudsters sold bonds for nonexistent infrastructure projects, capitalizing on 1920s urban growth.
38. Fictitious Trust Funds: Con artists solicited deposits for fake trusts, promising high returns before absconding in the 1920s.
39. Bogus Travel Agencies: Scammers sold tickets for nonexistent tours, targeting affluent travelers in the 1920s.
40. Fake Art Investment Schemes: Con artists sold shares in forged or nonexistent artworks, exploiting the 1920s art market boom.
41. Sham Publishing Ventures: Promoters solicited funds for fake books or magazines, pocketing investments in the 1920s.
42. Fraudulent Stock Splits: Companies announced fake stock splits to inflate share prices, deceiving investors in the 1920s.
43. Bogus Agricultural Cooperatives: Con artists sold memberships in fake farming collectives, targeting rural investors in the 1920s.
44. Fake Employment Agencies: Scammers charged fees for nonexistent job placements, exploiting job seekers in the 1920s.
45. Phony Stock Promotions: Promoters hyped worthless stocks through paid advertisements, misleading investors in the 1920s.
46. Fictitious Shipbuilding Stocks: Con artists sold shares in fake maritime companies, capitalizing on 1920s shipping growth.
47. Bogus Medical Equipment Stocks: Fraudsters issued shares in nonexistent medical device firms, exploiting 1920s healthcare advances.
48. Fake Retail Franchises: Con artists sold rights to nonexistent store chains, targeting entrepreneurs in the 1920s.
49. Sham Investment Seminars: Promoters charged for get-rich-quick seminars, delivering worthless advice in the 1920s.
50. Fraudulent Bond Underwriting: Brokers sold fake bonds as underwriters, deceiving investors in the 1920s.
51. Bogus Real Estate Auctions: Con artists staged fake land auctions, selling worthless or nonexistent plots in the 1920s.
52. Fake Utility Patents: Promoters sold shares in unpatented utility devices, exploiting 1920s electrification trends.
53. Phony Stock Dividends: Companies paid dividends with borrowed funds, misleading shareholders in the 1920s.
54. Fictitious Export Scams: Con artists solicited funds for fake overseas trade deals, promising profits in the 1920s.
55. Bogus Hotel Investments: Promoters sold shares in nonexistent resorts, targeting tourism investors in the 1920s.
56. Fake Stock Certificates: Fraudsters sold forged certificates for legitimate companies, deceiving investors in the 1920s.
57. Sham Brokerage Firms: Con artists operated fake brokerages, pocketing client funds without trading in the 1920s.
58. Fraudulent Land Leases: Promoters sold leases for nonexistent mineral or oil rights, exploiting 1920s resource booms.
59. Bogus Radio Advertising Scams: Con artists sold ad slots on nonexistent radio stations, targeting businesses in the 1920s.
60. Fake Stock Market Newsletters: Publishers sold subscriptions with manipulated stock tips, misleading investors in the 1920s.
61. Phony Textile Investments: Con artists sold shares in fake fabric mills, capitalizing on 1920s industrial growth.
62. Fictitious Shipping Ventures: Promoters sold shares in nonexistent cargo firms, exploiting 1920s trade expansion.
63. Bogus Patent Medicine Ads: Hucksters ran false ads for ineffective cures, deceiving consumers in the 1920s.
64. Fake Stock Buybacks: Companies announced fake share repurchasing programs to inflate prices in the 1920s.
65. Sham Real Estate Trusts: Con artists sold shares in fake property trusts, targeting investors in the 1920s.
66. Fraudulent Mining Leases: Promoters sold leases for nonexistent mineral deposits, exploiting 1920s mining speculation.
67. Bogus Financial Newsletters: Publishers sold subscriptions with fake investment advice, misleading readers in the 1920s.
68. Fake Stock Offerings: Con artists issued shares for nonexistent firms, deceiving investors in the 1920s.
69. Phony Land Syndicates: Promoters sold shares in fake land development groups, exploiting 1920s real estate trends.
70. Fictitious Oil Leases: Con artists sold leases for nonexistent oil fields, targeting investors in the 1920s.
71. Bogus Stock Dividends: Companies issued fake dividends to attract investors, collapsing when funds ran out in the 1920s.
72. Fake Utility Stocks: Fraudsters sold shares in nonexistent power companies, exploiting 1920s electrification.
73. Sham Investment Clubs: Con artists organized fake clubs, collecting dues without investing in the 1920s.
74. Fraudulent Stock Brokers: Brokers sold fake securities, pocketing client funds in the 1920s.
75. Bogus Real Estate Bonds: Con artists sold bonds for nonexistent property projects, deceiving investors in the 1920s.
76. Fake Mining Ventures: Promoters sold shares in nonexistent mines, exploiting 1920s resource speculation.
77. Phony Stock Promotions: Con artists hyped fake stocks through paid ads, misleading investors in the 1920s.
78. Fictitious Land Sales: Promoters sold nonexistent plots, targeting real estate investors in the 1920s.
79. Bogus Financial Advisors: Self-styled experts charged for fake investment advice, deceiving clients in the 1920s.
80. Fake Stock Exchanges: Con artists ran sham exchanges, selling worthless securities in the 1920s.
81. Sham Oil Syndicates: Promoters sold shares in fake oil ventures, exploiting 1920s energy booms.
82. Fraudulent Bond Sales: Brokers sold fake corporate bonds, deceiving investors in the 1920s.
83. Bogus Real Estate Firms: Con artists operated fake agencies, selling nonexistent properties in the 1920s.
84. Fake Stock Tips: Brokers sold fake insider tips, manipulating prices for profit in the 1920s.
85. Phony Investment Funds: Con artists collected funds for fake portfolios, pocketing money in the 1920s.
86. Fictitious Mining Stocks: Fraudsters sold shares in nonexistent mines, targeting 1920s investors.
87. Bogus Stock Brokers: Con artists posed as brokers, stealing client funds without trading in the 1920s.
88. Fake Real Estate Leases: Promoters sold leases for nonexistent land, exploiting 1920s property booms.
89. Sham Financial Seminars: Con artists charged for worthless investment seminars, misleading attendees in the 1920s.
90. Fraudulent Stock Sales: Brokers sold fake shares in legitimate firms, deceiving investors in the 1920s.
91. Bogus Oil Stocks: Con artists sold shares in nonexistent oil companies, exploiting 1920s energy trends.
92. Fake Land Auctions: Promoters staged fake auctions for nonexistent plots, targeting investors in the 1920s.
93. Phony Stock Dividends: Companies paid fake dividends to inflate stock prices, collapsing in the 1920s.
94. Fictitious Utility Bonds: Fraudsters sold bonds for nonexistent power projects, deceiving investors in the 1920s.
95. Bogus Real Estate Syndicates: Con artists sold shares in fake property groups, exploiting 1920s land booms.
96. Fake Stock Certificates: Fraudsters sold forged certificates for real companies, misleading investors in the 1920s.
97. Sham Investment Advisors: Con artists charged for fake financial advice, deceiving clients in the 1920s.
98. Fraudulent Mining Bonds: Promoters sold bonds for nonexistent mines, targeting 1920s investors.
99. Bogus Stock Promotions: Con artists hyped fake stocks through ads, misleading investors in the 1920s.
100. Fake Real Estate Trusts: Promoters sold shares in nonexistent property trusts, exploiting 1920s real estate trends.

Note how many of them are still around or are similar to today’s modern scams.

Con Men Names of the 1920s

In the early 20th century, several colorful and now-historical terms were commonly used to describe scammers, fraudsters, and con men. These terms reflected both the criminal behavior and the flair with which many con artists operated. Here are some of the most widely used:

1. Confidence Man (or “Con Man”): Refers to an individual who gains a victim’s trust to perpetrate fraud, a term widely used in the 1920s for skilled deceivers.
2. Grifter: Describes a petty swindler or con artist, often tied to carnival scams or traveling frauds, popular in the early 1900s.
3. Swindler: A formal term used in media and law enforcement for someone who deceives others out of money or assets through cunning.
4. Four-Flusher: Derived from poker, denotes a fraud who bluffs about their wealth or status, common in 1920s slang for pretenders.
5. Sharp (or Sharpie): Refers to a cunning individual who uses wit to manipulate or deceive, often for financial gain, prevalent in 1920s urban slang.
6. Bunco Artist: Designates a specialist in street-level scams like shell games, with “bunco squads” in 1920s police departments targeting such frauds.
7. Racket Man: Describes someone running a fraudulent business or protection racket, often linked to Prohibition-era organized crime in the 1920s.
8. Snake Oil Salesman: Originally for fraudulent medicine peddlers, broadly used in the 1920s for those making false promises in marketing.
9. Charmer: Refers to a con artist using personal magnetism, often in romance scams, to exploit victims in the 1920s.
10. Hustler: Denotes a scammer surviving through trickery or gray-area schemes, though sometimes used positively in the 1920s.
11. Flimflam Man: Describes a con artist who uses fast-talking deception or sleight-of-hand tricks, a lively 1920s term for small-time fraudsters.
12. Chiseler: Refers to a petty crook who “chisels” small amounts through deceit, common in 1920s slang for underhanded swindlers.
13. Skinner: Denotes a fraudster who “skins” victims of their money, often through gambling scams or fake investments, used in 1920s underworld slang.
14. Highbinder: Originally for gang members, in the 1920s it described con artists orchestrating elaborate frauds, especially in urban settings.
15. Slicker: Refers to a smooth-talking deceiver, often a city-dwelling con man who exploits rural or naive victims in the 1920s.
16. Bamboozler: Describes someone who confuses or misleads victims with persuasive nonsense, a playful 1920s term for tricksters.
17. Gyp Artist: Denotes a scammer who “gyps” victims with cheap or fraudulent goods, tied to 1920s street and carnival cons.
18. Mountebank: Refers to a flamboyant fraudster, often posing as an expert or doctor, peddling fake cures or schemes in the 1920s.
19. Shill: Describes a con artist’s accomplice who poses as a satisfied customer to lure victims, common in 1920s auctions or gambling scams.
20. Wire: Refers to a con man specializing in telegraph or stock frauds, exploiting 1920s communication technology for scams.
21. Humbug: Denotes a fraudster peddling exaggerated or false claims, often in entertainment or business, a term lingering from the 19th century into the 1920s.
22. Gold Brick Seller: Refers to a scammer selling fake or worthless items as valuable, derived from literal “gold brick” scams in the 1920s.
23. Knocker: Describes a con artist who undermines competitors or marks to gain trust, often in 1920s real estate or stock frauds.
24. Scalper: Refers to a fraudster reselling fake or overpriced tickets or goods, exploiting 1920s event and travel booms.
25. Diddler: Denotes a petty swindler who “diddles” victims out of small sums through clever ruses, a lighthearted 1920s slang term.

A Culture Ripe for Exploitation

The economic expansion of the 1920s created a fertile environment for fraudulent schemes to take root. As industries flourished and new technologies promised previously unimaginable possibilities, Americans embraced a collective belief in progress, prosperity, and personal transformation. From the average worker to the upwardly mobile professional, many believed that wealth was within reach. This optimism, however, also bred vulnerability. The promise of fast profits and a better life opened the door for scammers who knew exactly how to exploit cultural aspirations and economic naiveté.

At the same time, the financial world operated with minimal oversight. Regulatory infrastructure was still in its infancy, and investor protections were nearly nonexistent. Most Americans had limited understanding of financial instruments, market manipulation, or the warning signs of fraudulent behavior. Trust was often placed in appearance and reputation rather than verifiable facts. Scammers, aware of these blind spots, capitalized on them by positioning themselves as credible, successful, and connected. They wore fine suits, spoke confidently, and offered exclusive opportunities to those eager to enter the ranks of the wealthy.

The era’s obsession with fame and fortune also fueled the fraud epidemic. Popular figures like Henry Ford and Charles Lindbergh were seen not just as innovators but as symbols of what could be achieved with courage and initiative. Their stories inspired others to take bold risks, sometimes with little caution. Con artists mimicked the language of these heroes, offering schemes that promised inclusion in the American success story. In this environment, even highly questionable ventures could be framed as visionary.

The end of the decade, however, revealed the consequences of unchecked greed and deception. The 1929 stock market crash shattered illusions of endless growth and exposed the extent to which speculative bubbles and fraudulent schemes had inflated the economy. Investors who had once dreamed of wealth found themselves ruined. In the wake of this collapse, public outrage mounted. The realization that so many scams had flourished without scrutiny led to a push for reform. This era of unregulated capitalism came to an abrupt close, and the 1930s ushered in landmark legislation and the formation of oversight bodies aimed at restoring trust in the financial system.

The frauds of the 1920s were not just the result of individual deception. They were made possible by a culture that prized ambition over caution, risk over skepticism, and surface-level success over substantive truth. It was a decade of dreams, and for many, of disillusionment.

Legacy of the 1920s Scams

The scams of the 1920s left a lasting imprint on American financial and cultural life, serving as stark reminders of how ambition, greed, and a lack of oversight can converge to produce devastating consequences. These schemes thrived during a time of extraordinary optimism, when economic expansion, new technologies, and a belief in limitless upward mobility gave rise to bold investment claims that went largely unchecked. Con men like Charles Ponzi and Leo Koretz exploited not just gaps in financial literacy, but also the cultural belief that quick wealth was a mark of intelligence and courage. In doing so, they revealed how easily confidence could be weaponized in a system driven more by enthusiasm than regulation.

The high-profile nature of these frauds ultimately shifted public opinion. As investors lost fortunes and stories of deception dominated newspapers, there was a growing realization that unchecked markets could lead not just to individual losses but to broader instability. This contributed to a shift in national priorities. The exuberance of the Roaring Twenties gave way to the sobering realities of the Great Depression. In that context, the fallout from these scams reinforced the call for institutional change. Lawmakers and reformers began to take seriously the need for regulation, transparency, and consumer protection in financial markets.

One of the most direct outcomes of this shift was the creation of regulatory bodies and watchdog mechanisms. While the Better Business Bureau had begun in the early 1920s to identify dishonest businesses, the stock market crash of 1929 and the collapse of public trust led to the eventual formation of the Securities and Exchange Commission in 1934. The SEC and other regulatory frameworks were designed to restore confidence by enforcing disclosure, prosecuting fraud, and monitoring the conduct of brokers, promoters, and investment firms. These institutions were not just reactions to financial losses, but structural attempts to guard against the emotional and psychological manipulation that con artists had exploited so effectively.

Today, the legacy of 1920s scams is more relevant than ever. While the methods have evolved, from land deeds and postal coupons to phishing emails and cryptocurrency, many of the same vulnerabilities remain. Human psychology still responds to urgency, flattery, and exclusivity. The lesson is not that progress and innovation are dangerous, but that in any period of rapid change, due diligence must keep pace with opportunity. The fraudsters of the 1920s succeeded because the safeguards of the era were not built to contain their deception. Their legacy endures as a warning: no matter how bright the promise, trust must be earned, verified, and protected through strong systems and informed vigilance.

Lessons from the 1920s Cons

From glib con men selling monuments that weren’t theirs, to charismatic fraudsters exploiting science and prejudice, the 1920s offered swindlers a golden opportunity. Easy money schemes proliferated in nearly every sector – real estate, stocks, oil, technology, health, entertainment, and even social movements. Many Americans, high and low, fell prey to these cons in the exuberance of the era, when fortunes were made overnight and “anyone can be a millionaire” optimism abounded. The fallout was often tragic: life savings vanished, health and lives were lost, trust in institutions was eroded. Yet, these scams also prompted reforms – from tougher financial regulations and consumer protection to a more skeptical public.

Looking back on the Roaring Twenties’ lesser-known frauds, one is reminded that behind the jazz-age glamour lay a darker story of grifters and gullibility. The technology may change (today’s scammers pitch cryptocurrency or miracle stem-cell cures instead of radio stocks or radium water), but the patterns persist. The swindles of the 1920s stand as cautionary tales – warnings from history that whenever greed, innovation, and credulity collide, the con artists won’t be far behind, ready to write new chapters in the age-old book of fraud.

Scams of the 1920s vs. Scams of the 2020s: A Century of Deception, Evolved

While a full century separates the scams of the 1920s and the 2020s, the core mechanics of fraud remain largely unchanged: both eras saw opportunists exploit optimism, manipulate emerging technologies, and prey on public confusion. But the context, scale, and delivery mechanisms of scams have evolved dramatically, shaped by cultural attitudes, technological infrastructure, and regulatory environments.

Medium and Method

In the 1920s, scams were largely face-to-face, paper-based, or conducted through early mass media such as newspapers, radio ads, or mailed promotional materials. Con men presented themselves as legitimate businessmen, often with forged documents and rented offices. Schemes required personal persuasion—handshakes, public demonstrations, and staged success stories, to win trust.

By contrast, the 2020s are defined by digital deception. Scammers now operate anonymously, often across borders, using social media, encrypted messaging apps, fraudulent websites, and phishing emails to target victims. Romance scams, investment frauds, and impersonation schemes unfold entirely online, with convincing avatars and AI-generated text replacing the need for in-person charm. Instead of a rented office, today’s scammer operates from a smartphone or keyboard, often within organized crime syndicates.

Targets and Scale

The 1920s con artist typically targeted individuals or small communities: friends, neighbors, or regional investors. Scams like Ponzi’s or Koretz’s were massive for their time, but still limited in scope by geography and communication speeds.

In the 2020s, scams are global and instantaneous. A single phishing campaign or cryptocurrency scam can reach millions of people within hours. Scammers target not just individuals but entire populations, using data leaks, social engineering, and algorithmic advertising to identify emotionally vulnerable or financially naive targets. Technology amplifies their reach and reduces the time between targeting and exploitation.

Narratives and Illusions

In both decades, frauds were built on the cultural myths of their time. The 1920s, with its postwar optimism and rags-to-riches aspirations, celebrated inventors, explorers, and businessmen. Scammers imitated those figures, offering secret investment tips, oil fields, land deals, or connections to untapped riches.

The 2020s cater to a digitally conditioned audience shaped by social media, influencer culture, and fear of missing out. The scammer’s narrative has shifted: they may pose as crypto investors, tech entrepreneurs, veterans, doctors, or romantic partners. What remains consistent is the emotional appeal—promises of love, belonging, wealth, or transformation. But the illusion now unfolds through platforms like WhatsApp, Instagram, or Telegram, not in parlors or sales offices.

Psychological Manipulation

Manipulation tactics remain central. In the 1920s, scammers used urgency, exclusivity, and appeals to patriotism or local loyalty. Investors were told they were part of a special opportunity or helping build the future.

In the 2020s, manipulation is more personalized. Scammers use emotional grooming, data profiling, and social validation to win trust. Romance scammers build weeks- or months-long relationships before asking for money. Crypto scammers show fake dashboards with rising balances. Psychological conditioning is layered with technological sophistication, designed to overwhelm the victim’s defenses before they even realize they are being targeted.

Regulatory and Cultural Context

The 1920s had limited regulatory oversight. Agencies like the SEC did not yet exist, and fraud was often prosecuted only after high-profile collapses. Trust was placed in character, not compliance.

Today, regulations are more robust, but enforcement struggles to keep pace with the speed and complexity of digital crime. Many scams originate overseas, outside the jurisdiction of local law enforcement. While awareness campaigns exist, victims often face blame and stigma, especially in relationship scams, just as they did a century ago.

The scams of the 1920s were analog, theatrical, and rooted in personal performance. The scams of the 2020s are digital, scalable, and engineered for speed and precision. But both rely on the same human vulnerabilities: hope, fear, loneliness, and greed. The tools have changed. Psychology has not.

What began as whispered opportunities in smoky back rooms now travels through fiber-optic cables and data farms. The faces may be avatars instead of salesmen in hats, and the documents may be PDFs instead of printed stock certificates—but the end result is the same: trust is weaponized, and illusion is monetized. A century later, the long con continues: sometimes faster, quieter, and more profitable than ever.

What They Never Told You in History Class

What they never told you in history class is that the Roaring Twenties were not just about jazz, flappers, and the Harlem Renaissance. Beneath the glamor of speakeasies and Model Ts, the decade was riddled with fraud, manipulation, and elaborate financial deception. While schoolbooks often emphasize the innovations of Ford, the courage of Lindbergh, or the cultural shifts of the Jazz Age, they rarely mention the millions of Americans who were conned out of their savings by confidence men operating just as boldly. These scammers sold worthless land, fake oil wells, phony medical treatments, and even shares in nonexistent businesses, exploiting the very optimism and ambition that defined the decade.

In truth, the 1920s were a golden age for con artists. They operated with little oversight, in an era before consumer protections and federal regulatory bodies like the SEC existed. They preyed on the American dream: selling opportunity, excitement, and status wrapped in false promises. Many of these scams reached into the highest levels of society and government, yet remain absent from standard narratives of the period. To understand the full story of the 1920s, you must go beyond the headlines of glamour and invention and look at the shadow economy that thrived in the rush for quick riches.

Estimate of Scam, Fraud, and Con Victims in the 1920s

Major Scams:

• • • Charles Ponzi’s Scheme (1920): Defrauded ~40,000 investors of $15 million by promising 50% returns via postal coupons, collapsing when new investments dried up.
    • Leo Koretz’s Bayano Syndicate (1920–1923): Swindled 10,000–20,000 investors with fake Panama timber/oil ventures, promising 60% returns.
    • Florida Swampland Frauds: Sold worthless land to 50,000–100,000 northern investors, marketed as prime real estate during the 1920s land boom.
    • Stock Pool Frauds (e.g., Radio Pool): Manipulated stocks like RCA, affecting thousands of small investors, though exact victim counts are unrecorded.

Stock Market Fraud:

• • • By 1929, ~3 million households (10% of 30 million U.S. households) held stocks, many on margin.
    • Boiler rooms and fake stock promotions likely impacted 20–30% of these investors (600,000–900,000), who bought worthless or manipulated securities.
    • Margin trading amplified losses, with $8.5 billion in loans outstanding, exposing investors to fraud and market collapses.

General Frauds:

• • • The Better Business Bureau (1921) reported thousands of complaints yearly about fake charities, patent medicines, and chain letters.
    • Assuming 5,000–10,000 victims per major city annually, with ~100 major cities, yields 500,000–1 million victims yearly, or 5–10 million over the decade.
    • Scams like fake lotteries and advance-fee frauds (e.g., early “419” schemes) added to the toll, though data is sparse.

Total Estimate:

• • • Major scams: 100,000–200,000 victims.
    • Stock frauds: 600,000–900,000 victims.
    • General frauds: 5–10 million victims (accounting for overlap).
    • Total: 6–12 million victims, or 5–10% of the U.S. population (~120 million by 1930). This range is conservative, as many victims went unreported.

Limitations:

• • • No centralized fraud data existed in the 1920s; estimates rely on case studies and investment trends.
    • “Victim” definitions vary (e.g., direct financial loss vs. indirect harm from market manipulation).
    • The overlap between scam types and underreporting in rural areas complicates precision.

The Extent to which the 1920s Cons Contributed to the 1929 Crash and Depression

Role in the Stock Market Crash:

• • • Stock Pools: Schemes like the Radio Pool inflated prices of stocks like RCA, drawing small investors into a speculative bubble. When manipulators sold, prices crashed, contributing to the $14 billion loss on Black Tuesday (October 29, 1929).
    • Margin Trading: Fraudulent promotions encouraged margin buying, with $8.5 billion in loans by 1929. Forced sales during the crash amplified declines, as investors couldn’t cover loans.
    • Speculative Bubble: Frauds fueled perceptions of “easy money,” driving the Dow from 191 in 1928 to 381 in September 1929. Overvaluation, partly fraud-driven, set the stage for the 89% drop by 1932.

Role in the Great Depression:

• • • Confidence Erosion: High-profile scams (e.g., Ponzi, Koretz) and stock frauds eroded trust post-crash, triggering bank runs and reduced spending. By 1933, 4,000 banks failed, and unemployment hit 20%.
    • Economic Impact: Fraud-related losses strained businesses and individuals, but broader issues—agricultural overproduction, uneven wealth distribution, and tight monetary policy—were primary Depression drivers.
    • Regulatory Response: The crash, partly blamed on fraud, led to the Securities Act of 1933 and Securities Exchange Act of 1934, addressing stock manipulation but too late to prevent the Depression.

Scholarly Perspectives:

• • • Friedman and Schwartz (1963) emphasize monetary policy failures and banking weaknesses over fraud as Depression causes.
    • Balleisen (2017) notes frauds undermined market confidence but were secondary to structural issues.
    • Galbraith (1961) highlights speculative mania, partly fraud-fueled, but not as the sole crash trigger.
    • The crash itself was a tipping point, exacerbating but not solely causing the Depression, which began in mid-1929 due to declining production and demand.

Extent of Contribution:

• • • Frauds amplified speculative excesses, contributing 10–20% to the crash’s severity by inflating prices and eroding trust.
    • In the Depression, fraud played a minor role (5–10%), as overproduction, debt, and policy failures were dominant.
    • The crash’s impact was significant but not the sole Depression cause; fraud was a contributing factor within a complex economic collapse.

Conclusion

The 1920s were a time of striking contradictions. The decade brought innovation, expanding industries, and widespread financial optimism. It was an age when fortunes could be made seemingly overnight and when the American dream felt close enough to touch. At the same time, this environment allowed an entire class of fraudsters to thrive by exploiting ambition, inexperience, and unchecked enthusiasm.

Many who were scammed during this period were not naïve. They were simply immersed in a cultural atmosphere that rewarded boldness and speed over caution and scrutiny. Con artists understood how to take advantage of this climate. They adapted their methods to fit the aspirations of the time, whether by offering exclusive stock opportunities, promising miraculous medical treatments, or selling access to new technologies and land that often did not exist.

When the economy collapsed and the truth behind many of these schemes was exposed, the damage affected more than just investors’ wallets. It eroded public trust and exposed the limits of unregulated markets. This realization prompted the creation of regulatory structures intended to restore confidence and prevent future frauds. Institutions like the Securities and Exchange Commission were not just reactive measures. They were formed to provide long-term protection for investors and to reinforce the credibility of financial systems.

The most enduring lesson from the cons of the 1920s is not about individual greed, but about the conditions that allow deception to succeed. When optimism grows unchecked, when oversight is weak, and when style is mistaken for substance, fraud takes root. The scams of the Roaring Twenties are not relics of the past. They are reminders that whenever ambition outpaces accountability, history is likely to repeat itself.