Ponzi schemes are characterized by numerous qualities that diverge from those of legitimate, profit-producing investments. These schemes often promise investors...
A Ponzi scheme can lose years of investors’ hard-earned money, leaving victims grappling with a steep economic impact and unsure how to achieve even a partial financial recovery. These schemes are often masked by individuals or entities associated with legitimate financial institutions, such as commercial banks, investment banks, brokerages, and accounting firms. When the Ponzi scheme unravels, this is usually because the fraudster has finally run out of new funds to perpetuate the scheme.
As a result, recovering investor losses can be a lengthy and complicated process. Silver Law Group regularly represents individual investors seeking to recover money lost to a Ponzi scheme, but we also work alongside SEC receivers and bankruptcy trustees appointed in these cases. We can analyze the full economic impact of Ponzi schemes and figure out the best way for you to recoup your investments.
Ponzi schemes can have a devastating impact on investors, resulting in financial losses for most, if not all, participants.
Because the scheme usually collapses when the schemer cannot draw new forms of capital and sustain the promised returns, there may be numerous challenges for victims to achieve financial recovery. The long-term economic impacts of a Ponzi scheme can result in extreme financial hardship, or even ruin, for some investors.
Injured investors may also face a significant erosion of trust in previously highly esteemed financial institutions and systems. If the Ponzi scheme is large enough, it could cause long-term disruption to local economies when large numbers of individuals lose huge savings.
Recovering money from the actual Ponzi schemer may be impractical in some cases, because the schemer has lost most of the funds provided by investors by the time it is detected. However, that does not mean that investors have no recourse to collect compensation and recover some or all of their losses.
In many cases, the Ponzi scheme is perpetuated for months or even years because the fraudster is tied to a reputable brokerage firm, bank, or other trusted financial institution. These institutions may facilitate a Ponzi scheme, whether by failing to adhere to internal guidelines, detect red flags or turning a blind eye to obvious misconduct, but can still be held responsible in a third-party lawsuit filed by injured investors. The main concern for defrauded investors is to recover what they have unfairly lost from all responsible parties.
If you suspect that you have become the victim of a Ponzi scheme, you need an experienced litigation attorney who can safeguard your rights while actively maximizing your financial recovery. Scott Silver, along with the team at Silver Law Group, has an established track record of aggressively advocating for Ponzi scheme victims nationwide – and succeeding.
Whether navigating a third-party civil claim against an entity that enabled the Ponzi scheme or working with SEC receivers, we know what it takes to win money and reduce the economic pact that it has on your life. Please call us to learn more about how we can help.
Fill out the contact form or call us at (800) 975-4345 to schedule your free consultation.