James Paul Lewis, Jr.

Who is James Paul Lewis, Jr.?

James Paul Lewis, Jr. operated one of the largest and longest running "Ponzi schemes" in United States history. It has been reported that his crimes represent the 9th largest financial fraud in history, since the first documented flimflam in 1719 involving Scotsman John Law.

Over approx. 20 years, Lewis collected around $311 million U.S. dollars from investors. He operated under the name of Financial Advisory Consultants in Lake Forest, Calif., and promised high returns. Lewis said that he was investing the money, and he even made dividend and withdrawal payments so that the scam could continue, but was instead using it to finance his own high lifestyle of fancy cars, big homes, and girlfriends.

The ploy Lewis was running was a classic "Ponzi scheme"; in this scheme, new investors contribute funds that get redistributed to earlier investors. As long as new investors keep contributing, earlier ones keep getting a return on their investment and the fraud continues. But eventually, new investors stop contributing and the whole pyramid collapses, with the later contributors getting nothing in return for their investment.