http://www.trinity.edu/rjensen/FraudAmericanHistory.htm
History of Fraud in America (Edited for use in MBA 590_ NCSU)
Bob Jensen at Trinity University
Colonial History
Earliest "business" fraud in America centered around phony heath cures. Armstrong and Armstrong (1991) document many of the snake oil ploys that commenced soon after the Pilgrims landed on Plymouth Rock. Medical frauds ranging from deceptive medicines to spiritual cures to bloodletting expanded over time to modern day cancer miracle cures and Internet charlatanism.
Since early America was largely agricultural, various land schemes accompanied the growing market for deceptive rural living and farming products. As the original 13 colonies were established land was owned by men who had been granted land from the English King. They in turn sold land to individuals and established common areas. Although many of the early dealings were legitimate, it did not take long for land swindles to commence. Swindlers were either buyers or sellers of land. Victims were often new immigrants and Indians who lived on the land before Colonial times. One of the best known frauds was the 1626 purchase of Manhattan Island for trinkets valued at 60 guilders (approximately $24). In this case the Carnarsie Indians from Brooklyn perpetrated the fraud since their land was not even connected to Manhattan Island. But in most cases it was the white men who cheated the Indians and each other. Land swindling grew rampant as America expanded to the west and continues to be one of the major opportunities for fraud and deception.
Accompanying fraud were various checks and balances. Phony product hucksters were often fined and run out of town. Disputes were sometimes settled with fists, knives, and guns. Legal protections of deeds, claims, and land records came into existence to discourage, but certainly not eliminate, land