If you lost money in a Ponzi scheme, you have every right to be angry. The Ponzi scheme operator has...
Ponzi schemes collapse eventually. The funds the fraudster stole often can’t be recovered and the business or fund goes bankrupt, leaving bilked investors to look elsewhere. Third parties who abetted or negligently failed to detect the scheme are often targets of lawsuits.
If you are an investor defrauded by a Ponzi scheme, talk to an attorney at Silver Law Group. They can explain how bankruptcy affects Ponzi scheme recovery claims against third party professionals.
Recovering a lost investment from the promoters of a Ponzi scheme may be impossible. However, there are often third party professionals like accounting firms, law firms, banks, and financial advisors who intentionally or unwittingly supported the scheme.
These third parties often have significant resources, and claims against them can fund financial recovery for victims of the fraud. If the fake investment is now in bankruptcy, the bankruptcy trustee may bring claims against these third parties on behalf of bilked investors. The attorneys at Silver Law Group often work with receivers and bankruptcy trustees on Ponzi scheme recovery actions against third party professionals, and they can explain the legal steps involved.
Bankruptcy courts appoint a trustee to oversee the collection and distribution of funds to pay to bilked investors. Investors must submit a claim to the bankruptcy trustee, who pays verified claims on a pro rata basis. Investors can seek the return of both their principal and return on investment, though the amount to be paid depends on the amount available.
The trustee will liquidate the promoter’s assets, but usually those are insufficient to pay even a fraction of the claims. They will also claw back funds from those investors who profited from the scheme.
There will be a time limit on the submission of claims to the bankruptcy trustee. If you engage an experienced attorney at Silver Law Group as soon as you recognize an investment was a Ponzi scheme, we will ensure all your claims are submitted timely.
If a Ponzi scheme goes bankrupt, getting your money back is likely to be a slow and complex process. Silver Law Group will aggressively pursue your case on a contingency basis, so you pay us nothing until we recover assets for you. Our attorneys have extensive experience dealing with asset recovery against third party professionals in cases involving bankrupt Ponzi schemes, so contact us today for a free consultation.
