The Captivating ‘Money Marvel’ of Paris: Marthe Hanau and the French Ponzi Scheme
During the harsh winter of 1931, in the shadowy corners of Montmartre, a once-glamorous and enigmatic woman named Marthe Hanau awaited her interviewer, Roger Normand. Although her former opulence had vanished, her defiance and unwavering self-confidence remained palpable (Normand, 1931).
Marthe Hanau: From Rags to Riches
Born in Paris in 1884, Hanau’s beginnings held no hint of her later success or infamy. Her mother owned a baby clothing store, and Hanau displayed a remarkable talent for mathematics. However, she chose to abandon her plans for a teaching career. Her marriage to Albert Lazare Bloch, the son of a Lille businessman, resulted in a Paris perfume shop. Their partnership ended after the war.
Seizing the opportunity, Hanau immersed herself in the stock market and launched her newspaper, “La Gazette du Franc,” in 1925. France’s Roaring Twenties, characterized by a newfound fascination with stock buying, provided the perfect backdrop. Inspiring confidence with her penchant for businesslike attire and austere image, Hanau recommended winning stocks and soon began selling shares in her own companies and a network of subsidiaries.
The Finance Queen of Paris
By 1928, Hanau’s financial empire boasted impressive headquarters, four other Paris offices, a staff of 450, 200 agents, and a network of branches.More than 60,000 investors had entrusted her with close to 220 million francs (Tassin, 1931). Her success, however, made her powerful enemies, and the walls of her once-impressive empire began to close in.
The Fall of the Money Marvel
Rumors of bribery, bankruptcy, and fraud investigations forced a police raid in December 1928. Hanau and her ex-husband, Albert Lazare Bloch, were arrested, leaving behind a wake of devastated investors.
Trial and Legacy
Hanau’s trial, fraught with drama and intensity, opened in 1930. Confronted with the allegations, she remained unapologetic. “Justice is rotten,” she declared, interrupting expert witnesses and juggling facts and figures. Her conviction came in March 1931, along with a modest fine. Hanau’s defiance continued, as she appealed her sentence and was eventually sentenced to an additional year in prison. In a brave, calculated risk, she took her own life in prison that July, leaving behind a legacy of brilliance, determination, and unforgettable financial wizardry.
Bullet points:
- Born in Paris in 1884
- Displayed exceptional math skills but didn’t pursue a teaching career
- Married Albert Lazare Bloch and opened a perfume shop in Paris
- Immersed herself in the stock market and launched her newspaper “La Gazette du Franc” in 1925
- Promised annual returns of up to forty percent and potential doubling of their money in less than three years
- Arrested in 1928 for fraud and bribery allegations, leaving behind a wake of devastated investors
- Went on trial in 1930, proclaimed innocence and “Justice is rotten” before receiving a conviction and modest fine
- Sentenced to an additional year in prison, took her own life in prison in July 1931
- Once ruled the French financial scene, controlled hundreds of millions of francs, and influenced international leaders.