Bernie Madoff was an American financier known for orchestrating the largest Ponzi scheme in history. A Ponzi scheme operates by...
In a Ponzi scheme, the invested funds are not used to generate profit. Instead, investors’ money is used to pay purported returns to earlier investors. By the time a scheme collapses, schemers have often spent, hidden, or redistributed most of the money, leaving little if anything for an investor to recover.
If you invested money and lost it all, you should consult with an experienced Ponzi scheme attorney at Silver Law Group to discuss your possible recovery options.
To recover the money you lost in a Ponzi scheme, you could file a lawsuit against those at fault in a class action lawsuit. This legal process aims to hold responsible parties accountable and secure justice for victims.
Recovering money from a Ponzi schemer is often a long and challenging process. Our lawyers at Silver Law Group have experience in securities fraud nationwide and can help you understand your legal options and pursue recovery. We can help determine if you can recover some of your money from parties other than the schemer, such as brokers or firms that failed to perform their regulatory duties.
A lawsuit against the schemer may be ineffective if they have no assets. However, if many investors lost money in the same scheme, partial recovery is often possible from associated third parties through a class action. A class action can combine claims and increase the collective power of victims to pursue financial recovery from the culpable party or parties.
If a Ponzi scheme operator was a registered broker, the brokerage firm may be liable for failing to supervise them adequately. Some third-party financial institutions may be accountable if they enabled the fraud or were derelict in their due diligence.
When a Ponzi scheme collapses, the court often appoints a bankruptcy trustee or SEC receiver to oversee the distribution of the remaining assets. A trustee or receiver generally gathers the perpetrator’s remaining assets and identifies all creditors (victims), who must file a claim in the proceeding to prove their losses. The court then typically distributes the collected assets proportionally among the creditors.
This process can frequently lead to significant recovery, especially in large-scale frauds where the trustee aggressively pursues assets. A trustee may file a clawback lawsuit to recover fraudulent transfers from early investors who profited from the scheme. This usually helps net losers—victims who invested more than they received—recover their principal.
If you have questions about how to get your money back if a Ponzi schemer lost it all, contact Silver Law Group to discuss the potential routes to recover your losses. You could be eligible to pursue claims against the schemers and potentially third parties through a class action lawsuit. Our experienced securities fraud attorneys work on a contingency basis, meaning you don’t pay unless we secure a recovery for you.
Our firm can perform an early and complete investigation to develop a litigation strategy that recovers the maximum damages possible in your case. Contact Silver Law Group today to request your free case consultation.
