What Should I Do if I Think I Invested in a Ponzi Scheme? 

Ponzi schemes can affect even sophisticated investors. It’s not unusual to miss the warning signs when you first hear of an intriguing opportunity. However, if you have been the victim of a Ponzi scheme, you should seek the help of a new financial advisor and a securities fraud attorney to help understand your rights.

Once you’ve invested, some things might occur that make you uneasy. Perhaps your returns are consistent despite a volatile market or you’re having trouble withdrawing your money. Whatever it is, you’ve begun to suspect the investment is not legitimate.

The securities fraud attorneys at Silver Law Group often take calls from investors all over the country asking what they should do if they think they invested in a Ponzi scheme. We advise investors to take several steps to minimize their potential losses and position themselves to recover as much of their investment as possible.

Terminate The Relationship With The Ponzi Schemer

Cutting ties with the fraudster should be your first step. If you have automatic payments to the schemer set up, cancel the arrangement. Do not invest any more money with them.

Try to withdraw the money from your account. If it is a Ponzi scheme, the operators will likely try to talk you into sticking with the investment. Even if they accept that your decision is final, they may find reasons to delay disbursing your funds.

You should document everything that happens after you request to withdraw your funds. Find all the paperwork that your initial investment generated, collect past statements, contracts, and transaction records, and secure any emails or texts from the investment promoters. Silver Law Group can use this information to support a claim for damages.

Report The Suspected Ponzi Scheme

If you were bilked, it’s likely that others were too. You can help shut down the fraud by reporting your concerns to the appropriate regulatory authorities.

The Securities and Exchange Commission has ten regional offices around the country, each staffed with enforcement officers who can investigate suspected securities fraud. Contact the office nearest the fraudster’s business location. You could also file a report through the Financial Industry Regulatory Authority (FINRA) complaint process.

We can also help you make the appropriate complaints. Working with a legal professional can ensure your report gets to the right people and may better position you to make a claim when the Ponzi scheme collapses. Several of our attorneys have significant experience working with SEC whistleblowers who report these schemes to the SEC.

Engage Counsel To Help You Recoup Funds You Lost In The Ponzi Scheme

Recovering money invested in a Ponzi scheme can be challenging, but it is possible. There are various avenues available to recoup your funds.

You can file a civil lawsuit against the fraudsters and anyone who promoted the Ponzi scheme. Attorneys at Silver Law Group could file a civil lawsuit on your behalf. In many cases, joining forces with other investors to pursue a class action lawsuit is more efficient and cost-effective. Silver Law Group also has extensive experience representing investors in claims against their financial advisors pursuing claims in FINRA arbitration and in court.

The regulatory authorities may also try to get money back from people who profited from the Ponzi scheme and direct it toward people who lost money in the scheme. Silver Law Group frequently cooperates with SEC receivers, bankruptcy trustees, and others to help recover losses from multiple sources.

Call Silver Law Group If You Think You Invested In A Ponzi Scheme

If you’re wondering what to do if you think you invested in a Ponzi scheme, the short answer is get out as quickly as you can. Then take steps to limit your losses. A nationwide investment fraud firm like Silver Law Group can provide the legal insight to achieve the best possible recovery. Contact us as soon as you develop suspicions that an investment may not be legitimate.