If you have suffered financial harm by a Ponzi scheme, you may be uncertain of where to turn as you deal with the fallout from this breach of trust. Victims who lose money from Ponzi schemers have the legal right to seek financial recovery.
Liability in Ponzi schemes can extend to one or multiple parties involved directly or indirectly in these fraudulent practices. By being proactive and speaking with an experienced Ponzi scheme attorney from Silver Law Group, you will be in a better position to seek rightful damages from all liable parties involved. We have years of experience in fighting for Ponzi scheme victims and recovering millions of dollars.
A Ponzi scheme is similar to a pyramid scheme, but typically involves much more direct interaction between the Ponzi schemer and the investors. With a Ponzi scheme, a person or organization solicits individuals to invest their money into a particular venture.
Usually, this person or organization will make investors the promise of substantial guaranteed returns on the capital they invest. Aggressive sales tactics, unsolicited investment inquiries, or overly complex investment opportunities are often associated with scams that are later revealed as Ponzi schemes.
The Ponzi scheme may be promoted as one of any number of supposedly legitimate investments, such as the opportunity to invest in securities, real estate, or a fund. Victims may receive funds marketed as returns from the venture for months or even years.
However, instead of being actual profit from the venture, those so-called “returns” are usually just money invested by subsequent investors into the fraudulent scheme. The cycle continues, with new investors paying the “returns” of older investors, until at some point, the Ponzi scheme and liable parties are unmasked.
When a Ponzi scheme is uncovered, investors may face the reality of devastating financial losses. Investigating and determining the liable parties in a Ponzi scheme is important to helping investors recover the damages owed.
You should work with an experienced securities fraud litigation firm on these matters. Even if the Securities and Exchange Commission (SEC) decides to pursue a case against the Ponzi schemer, this may not result in financial recovery for the people who invested their money down in good faith. Liable parties could include financial advisors, brokers, investment advisors, accountants, financial institutions, and lawyers.
If a financial institution knowingly aided a Ponzi scheme, they could be found liable for damages. For example, a court or an arbitration panel may hold a bank accountable for aiding and abetting fraud, or for a breach of their fiduciary duty, and determine that they must pay out damages to plaintiffs.
When an individual or organization engages in a Ponzi scheme, these perpetrators must be held civilly accountable for their actions. Silver Law Group can work tirelessly to ensure that you are justly compensated for your losses.
We have recovered millions of dollars for victims of fraud from financial advisors, lawyers, commercial banks, auditors, and other institutions that are commonly found accountable in these cases. We have the experience and resources necessary to safeguard your legal interests while taking all critical steps to recover your financial losses, including by working with SEC receivers and bankruptcy trustees.
Contact us today for your free consultation and determine who can be held liable for a Ponzi scheme.
