Discovering that your investment losses were caused by a Ponzi scheme often raises a critical question: who is legally responsible for what happened? Chicago investors examining liability in Ponzi schemes are frequently surprised to learn that responsibility does not rest solely with the fraudster. In many cases, investor harm occurred because material information was not disclosed, financial statements were untrue or misleading, or omissions concealed the true condition of the securities involved.
Securities class action litigation exists to address investor harm caused by misconduct that affected multiple plaintiffs in the same way. When omissions or misleading statements distort the market, liability can extend to the parties whose actions or inaction allowed the scheme to continue, and recovery may be pursued through litigation filed in the appropriate District Court. Silver Law Group’s Ponzi scheme lawyers are available to shepherd your claim to success.
Ponzi schemes rarely succeed without the involvement or oversight failures of third parties, and frequently involve publicly-traded companies or investment structures tied to securities that appeared legitimate based on the disclosed information. Liability arises when, amongst other reasons, individuals or institutions with access to financial information fail to disclose material facts or allow misleading disclosures to reach the market.
Investors rely on audits, financial reports, and public representations when deciding whether to invest or remain invested in securities. When those disclosures contain omissions or untrue or misleading statements, investors are deprived of the ability to make informed decisions. It may be possible for clients in Chicago to hold others liable for Ponzi scheme losses.
Many cases involving Ponzi schemes in Chicago focus on third-party liability rather than the Ponzi schemer alone. Commercial banks, auditors, lawyers, and public companies can be liable when they ignore warning signs, fail to disclose material issues, or allow inaccurate financials to be disseminated to investors.
When third-party professionals failed to disclose known risks or permitted misleading information to remain in the marketplace, plaintiffs may be entitled to recover losses through securities fraud class actions. Silver Law Group only charges a fee if we secure a financial recovery for you, so you have nothing to lose by contacting us for a consultation.
Establishing liability in a Ponzi scheme requires demonstrating a clear connection between misconduct and a Chicago investor’s losses. This frequently involves analyzing public disclosures, audit materials, internal communications, and financial records to identify omissions or untrue or misleading representations that affected investment decisions. There are many individuals or institutions that may hold liability for allowing a Ponzi scheme to continue and it is important that we do not let them off the hook. They should have alerted investors that something was amiss, or prevent certain actions from happening in the first place. As a result, they owe you money that you lost, and we make the case that you and others investors in your class deserve compensation.
If you live in Chicago and believe there are third-parties that hold liability in allowing your Ponzi scheme losses, you can take action. Banks, lawyers, auditors, and many other parties could be named in a class action lawsuit.
Speak with the securities fraud attorneys at Silver Law Group today. We represent investors nationwide, and our lead attorney, Scott Silver, is nationally-known advocate for investors who were bilked by a Ponzi scheme. If your case qualifies, we will pursue it aggressively on a contingency fee basis. If we do not recover for you, you do not pay us.
