If you were lured into investing in a Ponzi scheme and lost money, getting it back might be challenging. In many cases, the fraudsters have lost the funds they stole. However, you may have recourse against the professionals who advised the fraudster. Claims against lawyers for aiding a Ponzi scheme could be fruitful in some cases if the lawyer materially and/or knowingly assisted the scheme.
Silver Law Group has been championing the rights of investors with great success for years. Our experienced Ponzi scheme lawyers provide aggressive representation for people who have been victimized, no matter where you’re located in the U.S. We have over 25 years of experience securing millions of dollars from Ponzi schemers, and we work with bankruptcy trustees and SEC receivers to pursue every avenue of compensation.
A Ponzi schemer usually sets up what seems to be a legitimate business or investment opportunity that offers unusually high or consistent returns. In many cases, they use reputable attorneys or other leaders in the community to promote their business or provide their services.
Early investors may receive an excellent return and recommend the investment to others. The dividends to early investors are dependent on the influx of capital from later investors. Eventually, there is not enough new investors coming in to pay the people who have already invested, and the scheme will usually begin to fall apart. You may be familiar with this story from the Bernie Madoff case.
An investigation may reveal that the scammer has spent or absconded with much of the money investors paid into the fraudulent enterprise. There may be very little cash available to repay the investors who were scammed. The securities fraud attorneys at Silver Law Group are skilled in finding other sources of funds to help victims recover their money, and attorneys who advised the Ponzi schemer is one option we can investigate if the attorney acted improperly.
The success of a Ponzi scheme rests on it being seen as a legitimate investment opportunity. In many cases, the fraudster works with lawyers who help them “paper” the scheme to appear above board. Their assistance gave the scammer the opportunity to take your money without real promise of returns. It is often possible to hold that lawyer responsible for aiding and abetting the Ponzi scheme.
There are a couple of possible claims an investor could make against a lawyer in the Ponzi scheme context. You could sue the lawyer for aiding and abetting the scheme operator’s fraud, and for aiding and abetting the operator’s breach of fiduciary duty to you as an investor. Depending on the circumstances, you might also sue the firm that advised the Ponzi schemer for legal malpractice.
Everyone is entitled to seek legal advice. Lawyers are not responsible when a client ignores their advice or uses it to commit crimes or engage in fraud. However, there is a line between providing legal advice and enabling a scammer to commit fraud, and some lawyers have crossed it.
At Silver Law Group, we will investigate evidence that a Ponzi schemer’s lawyer may have some liability to investors who lost money. For example, a legal professional who actively participated in selling securities or promoting the fraudulent scheme might have liability.
Proving a lawyer or law firm aided and abetted a Ponzi scheme is not easy but it is possible. Evidence of the fraud, plus circumstantial evidence the lawyers had knowledge of the fraud and provided substantial assistance in its success, could lead to a finding of liability. Pursuing claims against a law firm can be an effective tactic in recouping funds you lost in your investments.
Do not think that your hard-earned money is gone forever because of a fraudulent investment scheme. The Silver Law Group can employ several strategies to recover most of your money, including bringing claims against lawyers for aiding a Ponzi scheme.
We are aggressive investor advocates with a long track record of success in seeking justice for Ponzi schemes. Get in touch today to discuss your legal options.
