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Ponzi Schemes and Offering Frauds Using Complex Products

When you hire a financial advisor, you expect that they’ll do their due diligence to secure the best investment opportunities for you. Unfortunately, an advisor may fail to conduct all the necessary checks, putting your money at risk for investment fraud, including Ponzi schemes. 

Can victims of Ponzi schemes and offering frauds using complex products recover their money? What steps should you take if this has happened to you? Read on to understand how Ponzi schemes work and why you could benefit from partnering with an investment fraud lawyer near you to fight for your rights.   

Identifying a Ponzi Scheme

Investment fraud can take many forms. In a Ponzi scheme, a fraudster tricks people into investing in non-existent products that promise high returns. Instead of investing, the perpetrators use this money to pay old investors and keep some for themselves. Such schemes collapse when the amount coming in becomes insufficient to pay both new and existing investors. 

Most Ponzi schemes offer investment opportunities using complex strategies and products such as virtual currency and other digital goods. The schemes are popular for seeming to guarantee extremely high returns with nearly zero risks. 

Some tell-tale signs of a Ponzi scheme include: 

  • Unlicensed or unregistered sellers
  • Complex organizational structures, business models, and legal ownership of the company
  • Claims of abnormally high returns
  •  A never-ending need to recruit more investors
  • Highly consistent performances
  • Issues with investment payouts
  • Among others

Are You a Victim of a Ponzi Scheme?

Ponzi schemes have become more common in the digital era. Anyone can be a victim, and so it’s important to understand the right steps to take should you find yourself in this predicament.

To build a strong case for arbitration, you’ll need evidence that your financial advisor failed to perform the necessary checks and ensure a safe investment for you. Since gathering such information can be difficult for an average investor who doesn’t understand financial law, most people choose to work with an investment fraud lawyer. 

From the investigation to presenting evidence, proving misconduct and a breach of duty, and recovering your investment, having an attorney brings more confidence in your case and increases the chances of a successful outcome.  

Partner with an Investment Fraud Lawyer

Investing is a crucial life decision. You’re putting in your sweat and blood to secure the future financial well-being for yourself and your loved ones. This is why it’s important to hold someone accountable when you lose money through a Ponzi scheme that your financial advisor presented as an ideal investment opportunity.

Call Wolper Law Firm at 800.931.8452 to request a free consultation with a professional investment fraud lawyer. You can also reach our attorneys by sending a message through the contact form below. 

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]