Ponzi Tracker Reports: Charles Ponzi’s Former House Is For Sale

For the first time, ever, the public will have a chance to purchase the house that briefly belonged to the man whose last name came to epitomize the devastating financial weapon that has since become a household name.  The Lexington, Massachusetts house that once belonged to Charles Ponzi before his arrest on mail fraud charges is now publicly listed for sale to the public – at a price of $3.3 million.  Ironically, Ponzi’s initial purchase of the property was conditioned on the requirement that the seller invest with Ponzi’s Securities Exchange Company.

Originally built in 1913, the House was styled as a colonial revival mansion, featuring 16 rooms, a carriage house, and even a sunlight-illuminated conservatory.  Its first owner, Richard Engstrom, was a prominent industrialist who spent an estimated $50,000 to build the house – an amount equal to nearly $1.2 million today when adjusted for inflation. 

The house soon went on the market, and Ponzi reportedly took a keen interest.  After originally offering $25,000 for the house, Ponzi ultimately agreed to pay $39,000, paying $9,000 in cash and supplying the remainder with a “postal reply coupon” that Ponzi assured the seller would soon be worth $30,000.  Ponzi’s Securities Exchange Company had been wildly successful, taking in over $250,000 per day at its peak.

However, Ponzi’s purchase of the House came at a time when suspicions were mounting by authorities and journalists.  Increasing skepticism ultimately culminated in a front-page expose by the Boston Post (a newspaper that had previously published a glowing review that prompted a mass of new investors) and Ponzi’s surrender the following day to federal authorities on mail fraud charges.  Ultimately, Ponzi’s investors lost nearly everything, ultimately recovering less than 30% of total losses, which amounted to $20 million in 1920 ($225 million today).

After Ponzi’s company was placed into bankruptcy, the house was eventually sold.

A photo gallery of the house is featured here.

Troy Dooly is recognized internationally as an influencer in the areas of personal branding, leadership development, marketing campaigns, organizational expansion, and corporate launch strategies. Dooly is a speaker, results coach, and radio host. He is a founding member, show host (Beachside CEO) and News Director of the Home Business Radio Network. He is a founding member, and currently serves on the Board of the Association of Network Marketing Professionals