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Ponzi Schemes

Just imagine coming into an investment opportunity that promises high returns with no risk. It sounds like the legitimate business opportunity of a lifetime. This is a classic example of a Ponzi scheme. Everything seems too good to be true and there is no way you can lose.

The reality is that there are risks with most investments. Even the most profitable ones will see periods of volatility, and there are those times when returns will be negative. This is a part of the natural business cycle that follows the movements of the economy and industry.

A Ponzi scheme continues to produce returns and never has a bad year in its returns. This is because everything is a lie. These schemes don’t invest any of the money you give them. It is used to pay off the earlier investors to encourage them to pour more money into the scheme and fund the fraudsters’ lavish lifestyle.

The last investors are the ones that lose the most. The scheme eventually folds because no legitimate business is conducted, and everything is based on lies.

Last year, regulators shut down 34 Ponzi schemes and are continuing to go after these fraudsters. Most investors don’t realize what is happening until it is too late. This is when they learn the truth and face significant losses. It is hard to admit when this happens to them, and they don’t know what to do to get their money back.

Investors in Ponzi schemes can recover their losses by knowing what avenues to use. For example, in 2008 Bernard Madoff announced the largest Ponzi scheme ever. It seemed like these investors would never get their money back when the scheme was discovered. Today, the trustee and attorneys have been able to recover $488 million for investors. Regardless of what you think or hear, you do have options in these situations.

If you are the victim of a Ponzi scheme, take action now and call the Ponzi scheme fraud lawyers. We will help you to identify your options and will hold the perpetrators responsible. You have alternatives to get back the money you lost. The first step is to make that initial phone call to the Wolper Law Firm at 954.406.1231 / 800.931.8452 and take advantage of our free consultation. We will let you know what options are available and how we can help you.

The Red Flags of a Ponzi Scheme

Ponzi schemes have red flags that should make you cautious, including:

  • Large returns with no risk: All Ponzi schemes will promise returns that exceed 12%. Anything higher than this that doesn’t talk about the increased risks is a Ponzi scheme. These schemes use large returns and claim there is no risk to lure in investors. Twelve percent is the maximum amount that the Financial Industry Regulatory Authority (FINRA) allows stockbrokers and financial advisors to use for illustration purposes. FINRA regulates financial professionals and requires them to disclose the risks.  If you hear someone saying there is no risk, that it is guaranteed and you will always get high returns, be very cautious.
  • Consistent returns: Investments will always move up and down. This means that returns will vary depending on what is happening with the economy and market conditions.
  • Unregistered investments: Ponzi schemes involve using unregistered investments. These are securities that are not registered with the Securities and Exchange Commission. There is a lack of information about the company, its officers, or business practices.
  • Secretive strategies: Those running the Ponzi scheme will never tell you about their strategies for producing such consistent returns. It is always a secret. Investing is complex and you have the right to know the strategies that are used for investing your money.
  • Unregistered firms and unlicensed sellers: Many times, those running a Ponzi scheme are unlicensed firms and sellers. Federal and state securities laws require all investment professionals and their firms to be licensed and approved by regulators. Those individuals and entities that don’t have a license are hiding something.
  • Paperwork issues: If you are having trouble getting things like trade confirmations and statements, watch out. The Securities and Exchange Act of 1934 requires that you receive a confirmation any time your money is invested. You will also receive statements either monthly or quarterly, depending on whether any trades are taking place.
  • No cash outs: The inability to cash out is common with Ponzi schemes. The fraudsters don’t want you taking your money out and will do anything to prevent these situations. They will go as far as offering higher returns if you keep everything the same. Things can become more complicated when you stop getting your disbursements and don’t have access to your money.

These are some of the most common signs of a Ponzi scheme. If you feel you are involved in these schemes, call the Ponzi scheme fraud attorneys at the Wolper Law Firm. We will go after everyone involved in it to help you get back the money you lost. We have a 99% success rate for our clients and will work tirelessly to help you. Call us today at 954.406.1231 / 800.931.8452 and speak to a Ponzi scheme fraud lawyer.

Why Choose Us?

The Wolper Law Firm was founded to help investors like you. We understand the stress and challenges you face when dealing with different investment professionals. Our goal is to look out for your interests and make sure that you are treated fairly.

Matthew Wolper is the founder of our firm, and his focus is on protecting ordinary investors. Matt spent 14 years working with some of the biggest Wall Street firms and understands the securities industry. He saw the damage from unscrupulous financial professionals who targeted investors like you. His job is to level the playing field and make sure that you have someone on your side that will stand up and fight for you.

We have a 99% success rate for our clients. Our Ponzi scheme fraud attorney will find out what is going on and go after the fraudsters who have caused your losses. Our tireless efforts and focus are what makes us so successful.

For example, we recently settled a case with a brokerage firm that was involved in a Ponzi scheme. The client originally was unsure about how we could recover their funds. Our team investigated and was able to receive an award of $658,000 for this investor. We helped them to get back the money they lost.

Our track record speaks for itself, and we can help you. We work with investors across the country to hold Ponzi schemers accountable for their actions. We are successful in what we do and will devote our time and energies to seeking compensation for your losses.

Our clients give us five-star reviews for our knowledge, experience, tenacity, and professionalism. We listen to you and use all avenues to go after the fraudsters. One of our clients, Earl S., said, “I was scammed by an investment firm and used Wolper law firm. I highly recommend this law firm to anyone. They are very easy to work with and honest.”

We will help you to get the money and justice you deserve. Ponzi schemes are illegal, and time is of the essence in these cases. The faster you act, the quicker we will be in preventing things from becoming worse. This makes it easier to recover your losses and ensure that you are not another victim of Ponzi schemes. Contact us now at 954.406.1231 / 800.931.8452 and get your free consultation. We will look at your case and let you know what we can do. Experience makes a difference, and you want someone on your side that will get the best results for you.

What to do if You are Involved in a Ponzi Scheme?

Ponzi schemes are designed to keep you in the dark about everything that is going on. The fraudsters want you to assume that there are no issues. They will do anything to let you believe that there is nothing to worry about.

The best thing to do is not tell the fraudster about your suspicions. Instead, you want to quietly do the following things:

  • Gather evidence: You want to create a file that collects all evidence against the fraudsters. You want to keep this in a safe location. The file should have information such as the fraudster’s name, phone number, URL address, email address, and physical address. You also want to collect all written information you were sent. This shows what happened, and it helps us to establish a timeline of events.
  • Record all phone calls: Sometimes, the fraudsters will call you on the phone and make promises. You want to record these phone calls and store them with the rest of the evidence you are collecting.
  • File a police report: Ponzi schemes are a crime, and you want to file a police report right away. This information will let law enforcement know that you are the victim of a crime. A copy of the police report should be kept with all the other information you gather on the Ponzi scheme.
  • Know Your Rights: Learn about victims’ rights when it comes to financial fraud. The federal government and states give you information about your rights in these situations.
  • Contact us: Contact us right away to speak with a Ponzi scheme fraud attorney. We have an expertise in investment fraud and will explain the process of getting your money back.

These are some of the things you should do right away if you are involved in a Ponzi scheme.

Contact Us Today and Get the Help You Need!

Ponzi schemes are serious situations, and you need to get help immediately. The fraudsters want to keep you involved in the scheme for as long as possible. The faster you react, the less damage you will see to your finances.

The Wolper Law Firm team of Ponzi scheme fraud attorneys will investigate and go after the fraudsters. We work tirelessly to get the money and justice you deserve.

Our free consultation lets you discuss what happened, and it allows us to show you what we can do. We have a 99% success rate, so contact us today at 954.406.1231 / 800.931.8452.

FAQs

Ponzi schemes are based on borrowed time. This means that the scheme must constantly recruit new investors to keep everything going. Once the existing investors start withdrawing their money and new investors are harder to find, the scheme collapses.

Ponzi schemes rely on new investors to pay the older investors. The scheme uses the new money it is getting to pay the promised returns to these investors.

The fraudsters will use different techniques to lure you in. They may ask you not to tell anyone and play on your emotions, acting with authority and urgency. This could push you in a direction to make an emotional decision to become a participant. We recommend getting all the facts and doing your homework first. If the investment opportunity is so good, you should have the time to make an informed decision.

Client Testimonial

”Matt has been excellent to work with. He provided my husband & I with superb professional guidance & expertise throughout our legal process, eventually giving us an outcome that exceeded our expectations. We would highly recommend him.” – Beth Miller (Google Review)

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]