Types of investment fraud like Ponzi schemes are becoming increasingly common in the modern age. These scams can perpetrate lasting financial harm to victims, but there may be numerous legal options available to fight for justice and recover compensation. A Ponzi scheme class action can offer a legal remedy for multiple investors wronged by the same party who have suffered similar damages. Our attorneys are nationally recognized for our record and success representing investors for claims relating to Ponzi schemes.

The Ponzi scheme attorneys at Silver Law Group have collectively helped clients recover millions of dollars from investment losses. We understand all too well the devastating impact that securities fraud can have on you and your family, and will leave no stone unturned to help you recover your losses. Our managing partner, Scott Silver, routinely speaks at industry conferences, serves as the chair of the securities fraud group of the American Association of Justice and is on the board of PIABA, the Public Investor Advocate Association.

Possible Signs Of A Ponzi Scheme

Ponzi schemes are fraudulent investment opportunities that are often disguised as legitimate ventures. Typically, the Ponzi schemer will offer unusually high or consistently positive returns on an investment, but instead of providing those returns through legitimate business activities, older investors are paid with funds provided by new investors.

Although it may take years for the scheme to fall apart, the end is inevitable. By then, the money may be gone, resulting in large losses for many people.

It can be hard to identify a Ponzi scheme precisely because it often appears to be legitimate. However, there are some clear warning signs to look out for. Schemes promising high returns with minimum or no risk are among the most blatant of red flags, but some are far more subtle. For example, a Ponzi scheme may deliver unusually consistent returns during obvious times of market volatility. A Ponzi schemer will often make it difficult for investors to withdraw payments or “dividends” from the venture or present an investment strategy that seems unusually complex or unclear.

Ponzi scheme class actions can make it possible for multiple investors to seek financial recovery for their losses. Brokerage firms, commercial banks, investment banks, and other financial institutions are just a few examples of parties who could be found liable in a successful class action.

Benefits Of Ponzi Scheme Class Actions

Obtaining a favorable reward in a Ponzi class action will not be possible without a defendant to pursue. Frequently, the main perpetrator is being criminally or civilly prosecuted but does not have the financial resources to satisfy investor claims. Identifying the party to file suit against is a task best left to an experienced securities fraud litigation attorney.

Perpetrators of Ponzi schemes will often associate themselves with legitimate banks or other financial entities, but that does not mean that victims are left without legal recourse. Ponzi schemes don’t happen in a vacuum and third party professionals such as banks, auditors, or lawyers may have played a role in assisting the fraud. Many Ponzi schemes are so large that it is also difficult to determine all the investors who were affected.

This is where a class action can be incredibly useful. Through a class action, a group of people who have suffered financial harm from the same person and/or company can come together and file one lawsuit.

Not only can class action lawsuits be more efficient and effective, but the defendant may end up paying more in damages than they would otherwise if a single plaintiff was filing a case who does not have the financial resources to pursue a large company. A class action can hold responsible parties accountable for misconduct while helping investors recoup at least some of their losses.

There is strength in numbers. A class action can maximize the leverage the plaintiffs have because the defendant will likely not want to pay out individual settlements to multiple plaintiffs. A class action can frequently increase your chances of getting a share of a settlement or court award while spreading the litigation burden across multiple plaintiffs.

Get Legal Help From A Top Ponzi Scheme Class Action Attorney

If you have suffered a loss from what you believe to be a Ponzi scheme, an attorney like Scott Silver could investigate your situation further. We can determine whether you may be eligible to join others with similar losses in a new or existing class action lawsuit.

If you have lost money from being lured into a Ponzi scheme, numerous entities may be liable for damages – and you may not be alone. Do not hesitate to contact the attorneys at Silver Law Group to see if you can join a Ponzi scheme class action lawsuit.