Ferdinand Ward
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Ferdinand De Wilton Ward, Jr. (1851–1925), known first as the "Young Napoleon of Finance," and subsequently as "the Best-Hated Man in the United States," was an American
swindler A charlatan (also called a swindler or mountebank) is a person practicing quackery or a similar confidence trick in order to obtain money, power, fame, or other advantages through pretense or deception. Synonyms for ''charlatan'' include ''sh ...
. The collapse of his
Ponzi scheme A Ponzi scheme (, ) is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. Named after Italian businessman Charles Ponzi, the scheme leads victims to believe that profits are comin ...
caused the financial ruin of many people, including famous persons such as
Thomas Nast Thomas Nast (; ; September 26, 1840December 7, 1902) was a German-born American caricaturist and editorial cartoonist often considered to be the "Father of the American Cartoon". He was a critic of Democratic Party (United States), Democratic U ...
and the former U.S. President
Ulysses S. Grant Ulysses S. Grant (born Hiram Ulysses Grant ; April 27, 1822July 23, 1885) was an American military officer and politician who served as the 18th president of the United States from 1869 to 1877. As Commanding General, he led the Union Ar ...
, who had joined his son, Ulysses S. "Buck" Grant. Jr., as a partner in Ward's banking business. Heavy losses were incurred by many other members of the extended Grant family.


Background

Ward was born in
Geneseo, New York Geneseo is a Administrative divisions of New York#Town, town in Livingston County, New York, Livingston County in the Finger Lakes region of New York (state), New York, United States. It is at the south end of the five-county Rochester metropol ...
, to Jane Ward and Reverend Ferdinand De Wilton Ward, who had been missionaries in India. He had a younger brother. In 1873, Ward moved to New York City, and was a clerk at the Produce Exchange. Soon after his move, he stole money from a Sunday School and laundered it through a bank, substantially improving his situation. After marrying an heiress, Ella Champion Ward, née Green, in 1877, he was able to use her family's wealth for his advantage.


Ponzi scheme

In 1880 he established his own banking and brokerage firm. One of the first investments in his firm came from James D. Fish, president of the Marine National Bank, who continued colluding in Ward's swindle until its collapse. Ward also came into contact with Ulysses S. "Buck" Grant. Jr., the son of former president
Ulysses S. Grant Ulysses S. Grant (born Hiram Ulysses Grant ; April 27, 1822July 23, 1885) was an American military officer and politician who served as the 18th president of the United States from 1869 to 1877. As Commanding General, he led the Union Ar ...
, as his brother was a roommate of Grant Jr. at Columbia University. Eventually, Ward gained the trust and investments of Grant, Jr., whose name he attached to his own firm, now called Grant & Ward. Ward ran the company as a
Ponzi scheme A Ponzi scheme (, ) is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. Named after Italian businessman Charles Ponzi, the scheme leads victims to believe that profits are comin ...
, claiming that he had inside access to government contracts, a claim which gained further credence when the president later joined the firm as a full partner after investing $100,000 into the firm. Ward used the same
securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...
over and over again as collateral against loans and paid off older investors with money raised from newer ones, along with paying investors high interest on investments. Some investors, such as the Grants, kept most of their funds in the firm, receiving 2-3% profits per month. While his fraudulence remained undetected, Ward found great success, gaining $9 million, a brownstone in New York, and a palatial 25-acre estate in Connecticut. The Grants also gained wealth through the elaborate scheme, which gave Ward the nickname "The Young Napoleon of Wall Street". However, the scheme eventually collapsed on May 4, 1884, bankrupting the Grants, The Marine National Bank, Thomas Nast, and many other investors. Despite the elder Grant taking out a $150,000 personal loan from his friend
William H. Vanderbilt William Henry Vanderbilt (May 8, 1821 – December 8, 1885) was an American businessman and philanthropist. He was the eldest son of Commodore Cornelius Vanderbilt, an heir to his fortune and a prominent member of the Vanderbilt family. Vanderbi ...
, the collapse was irreversible, and the securities lost. Ward himself fled. Ward was brought before the
New York Supreme Court The Supreme Court of the State of New York is the trial-level court of general jurisdiction in the New York State Unified Court System. (Its Appellate Division is also the highest intermediate appellate court.) It is vested with unlimited civ ...
, found guilty of fraud, and sentenced to ten years in prison. During his trial, Ward showed no remorse for his actions, explaining that he had to " rob Peter to pay Paul".


Later years

During his time in prison at
Sing Sing Sing Sing Correctional Facility, formerly Ossining Correctional Facility, is a maximum-security prison operated by the New York State Department of Corrections and Community Supervision in the village of Ossining, New York. It is about north of ...
, Ward lived fairly comfortably through his connections, and was released after serving only six years. While he was imprisoned, his wife, Ella, willed her entire estate to the support, education, and maintenance of her son Clarence until he turned 25. Ella died in 1890, and the inheritance moved to Clarence, who moved in with Ella's family. This move deprived Ward of much of his wealth. After his release, Ward attempted to gain back his wealth to no avail, pursuing legal avenues but also orchestrating a failed
kidnapping In criminal law, kidnapping is the unlawful confinement of a person against their will, often including transportation/asportation. The asportation and abduction element is typically but not necessarily conducted by means of force or fear: the p ...
attempt of Clarence. In 1894, Ward married Isabella Ward, née Storer, and soon afterwards faded into relative obscurity, although he occasionally commented on the collapse of Grant & Ward and Ulysses S. Grant. He died in 1925 at the age of 74, and his wife died one year later. Ward's grandson, F. Champion Ward, was a vice president at the
Ford Foundation The Ford Foundation is an American private foundation with the stated goal of advancing human welfare. Created in 1936 by Edsel Ford and his father Henry Ford, it was originally funded by a US$25,000 gift from Edsel Ford. By 1947, after the death ...
, and his great-grandson, Geoffrey C. Ward, is an author and wrote the book ''A Disposition to be Rich'' about his great-grandfather in 2013.


References


Bibliography

* Ward, Geoffrey C. (2012), ''A Disposition to Be Rich: How a Small-Town Pastor's Son Ruined an American President, Brought on a Wall Street Crash, and Made Himself the Best-Hated Man in the United States''. New York:
Alfred A. Knopf Alfred A. Knopf, Inc. () is an American publishing house that was founded by Alfred A. Knopf Sr. and Blanche Knopf in 1915. Blanche and Alfred traveled abroad regularly and were known for publishing European, Asian, and Latin American writers in ...
. . (The author is his subject's great-grandson.) * McFeely, William. '' Grant: A Biography'' (NY: WW Norton & Co., 1981), 490–493. * Roberts, Russell. "The Wall Street Scandal of Grant and Ward,” ''Financial History'' #81 (Spring, 2004), 13–15,


External links


Review of "A Disposition to Be Rich" in the New York Times Sunday Book Review, June 29. 2012

"Read All About Geneseo's Dirty Rotten Scoundrel" in the Livingston County News, May 16, 2012
*
Geoffrey Ward collection on Ferdinand Ward and the Ward family, 1825-2012.
Manuscripts and Archives, New York Public Library. (Finding aid for research material collected by Geoffrey Ward while writing ''A Disposition to Be Rich''.) {{DEFAULTSORT:Ward, Ferdinand 1851 births 1925 deaths American financiers American prisoners and detainees American people convicted of fraud American confidence tricksters Criminals from New York (state) Financial scandals People from Geneseo, New York Pyramid and Ponzi schemes American businesspeople convicted of crimes Inmates of Sing Sing