Ponzi Schemes & Investor Fraud
Ponzi schemes and investor fraud were already rampant in the 1990s and early 2000s, but these types of scams have become increasingly popular in the new age of “digital entrepreneurs” touting their success on social media and luring prospective investors towards potential financial disaster. Investors can suffer serious financial losses if they become the victims of Ponzi schemes. Unfortunately, it may be difficult to realize you are a part of a Ponzi scheme until it is too late. However, with help from a skilled investment fraud attorney, you can fight back against Ponzi schemes and other types of investment fraud.
What Is a Ponzi Scheme?
According to the Federal Bureau of Investigation (FBI), the official definition of a Ponzi scheme is as follows: “A scheme that involves the alleged payment of dividends to initial investors by using money obtained through gaining new investors. However, instead of taking the dividends from the investment and properly reinvesting it back into the market, the scammers committing the fraud will opt to take on more and more new investors to keep alive the allusion of a legitimate investment.”
Whether those running the operation keep the money for themselves or use it to fund other financial endeavors, a Ponzi scheme can only perpetuate if new investors are consistently entering the scheme by willingly providing money or other financial securities. This influx of new money or securities enables the continued payment of earlier investors and keeps the cycle going. Once the flow of new investors stops, the scheme will likely fall apart, and a significant number of individual investors will lose their entire investment. In some cases, a Ponzi scheme can also end prematurely if the originators of the scheme decide to cash out their illegally obtained earnings, thus leaving all the remaining investing parties at a complete loss.
Trust Conrad & Scherer’s Experienced Ponzi Scheme Attorneys
At the law offices of Conrad & Scherer, our attorneys have dozens of years of combined experience fighting for investors who have been defrauded by these types of schemes. While being scammed can cloud your judgment with feelings of shame and anger, our laser-focused financial fraud attorney team will help you seek justice against the fraudsters. Conrad & Scherer’s skilled Ponzi scheme lawyers bring dozens of years of combined experience to your case. We will provide the personalized service you would expect from a smaller, boutique firm, coupled with the resources of a much larger, national firm.
As investment fraud attorneys, we know how frustrating falling victim to a Ponzi scheme can be and will work tirelessly to seek financial retribution for your case. If you’ve found yourself in this type of distressing situation, we can assist you. Contact our team of fraud litigators today, and let Conrad & Scherer fight for you!