Americans grumbled about what they saw as a massive increase in crime in the 1920s. There were plenty of articles about gangsters, racketeers, and big-time swindlers who thumbed their noses at law enforcement. Even ordinary citizens seemed inclined to break the law when it served their purpose.

Statistics showed, however, that national crime rates for burglary, robbery, and even murder were not significantly higher than they had been in earlier times. Cities such as Chicago were notorious for their killing and corruption, but a great deal of the lawbreaking related to Prohibition. Most people led peaceful, respectable lives and only read about swindles, murders, and gangland activities in the news, finding a certain amount of adventure and romance in the articles. "The gangster was an exotic [figure], seldom seen, only talked about," writes one author.

The Great Swindler

Charles Ponzi was one of the...