MacGregor, a Scottish soldier, claimed ownership of barren coastal land in Central America and rebranded it as the prosperous nation of Poyais. From London he launched an elaborate marketing campaign portraying Poyais as a tropical paradise with fertile soil, gold-bearing rivers, friendly natives, and a capital city featuring a bank, opera house, and modern housing. He produced a 355-page guidebook, forged official documents and currency, and even composed a national anthem. London and Scottish investors and emigrants responded strongly, driven by shared identity, his reputation, and an investment boom. He used urgency and scarcity to raise vast sums, and early settlers arrived to find wilderness.
History is full of scams that seem unbelievable in hindsight, yet they worked because they tapped into timeless aspects of human psychology. We like to think misinformation is a uniquely modern problem, tied to the internet and social media. But con artists have always preyed on our biases, hopes, and blind spots. One of the most striking examples comes from the 1820s, when a Scottish adventurer convinced hundreds of people to invest in and even emigrate to a country that didn't exist.
From his home in London, MacGregor launched a full-scale marketing campaign. He claimed Poyais was a tropical paradise: fertile soil for crops, rivers brimming with gold, friendly natives eager for trade, and a bustling capital city with a bank, opera house, and modern housing. He commissioned a 355-page guidebook, forged official documents and currency, and even wrote the country's national anthem.
The sales pitch worked. Londoners and Scots, drawn in by shared identity, his military reputation, and the Central American investment boom, bought in heavily. By some estimates, he raised the modern equivalent of over $1 billion. He pressured buyers with warnings that land was selling fast, using what we now know as the "scarcity principle" to trigger fear of missing out.
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