When a Ponzi scheme occurs, it can be a lengthy undertaking to determine who is liable and how to recover your losses. If an accountant or accounting firm is found to be involved in perpetrating the Ponzi scheme, victims can hold these parties responsible.
If you have been financially impacted by this fraud, an experienced Ponzi scheme attorney can help you pursue maximum financial recovery. Proving accountant liability in Ponzi schemes can be a viable means of recovering your losses from the fraudulent investment. Silver Law Group understands the current laws and regulations, and can protect your interests while pursuing the culpable parties.
If you have lost money because of a Ponzi scheme, you may have numerous options to recover compensation. For example, an accountant can be held liable for misrepresentations in client accounting. If an accountant fails to conduct due diligence when evaluating an investment, and that opportunity turns out to be a Ponzi scheme, they could face legal liability from investors who relied on the accountant’s work to decide where to invest their money.
The accountant does not need to have had actual or direct knowledge of the Ponzi scheme to be held liable for investor losses. Negligence in auditing financial statements, failure to detect a fraudulent scheme, wrongful certification of financial statements, or other failures to adhere to reasonable standards of care could lead to an assessment of liability against an accounting professional.
Accountant liability for losses from a Ponzi scheme can also stem from cases of intentional financial fraud. For example, an accountant might purposefully manipulate financial disclosures to help the Ponzi schemer make the fraud look legitimate. This would be a gross violation of professional standards and a breach of fiduciary duty to the client. Accountants are one of several third-parties who may be deemed legally liable when a Ponzi scheme is uncovered.
The actual Ponzi schemer rarely has investors’ money anymore when the scheme comes to light, because earlier investors were being paid with funds provided by newer investors the whole time. However, claims against accountants, brokerages, banks, lawyers, investment advisors, and others who played a role in the scam could be viable avenues to financial recovery.
These Ponzi schemes would fail if not for the negligent actions and failings of third parties like accountants, as well as other financial professionals whose seal of approval made investors come aboard. If you believe your money is tied up in a Ponzi scheme, the best thing to do is contact an attorney immediately.
A lawyer can also probe the situation further to determine whether your accountant or any other third party may be held liable for your Ponzi scheme losses. Time is of the essence, and you need to work with someone that has the resources, knowledge, and experience to develop a financial recovery strategy, including any class action that you could take.
Accountants are often integral to the furtherance of a Ponzi scheme to make the alleged investment look like an appealing opportunity for investors. Whether the accountant intentionally provided false audit statements and other paperwork to perpetuate the scheme, or they were simply negligent with their job, the defrauded investors can pursue damages for losses incurred from a Ponzi scheme.
While obtaining compensation from the actual Ponzi schemer can be extremely difficult or impossible in some cases, you may have numerous legal options to recover your money from any third parties (e.g. an accountant, auditor, or accounting firm) who enabled the scheme. The securities fraud attorneys at Silver Law Group have extensive experience investigating and pursuing all possible sources of compensation in these cases, including accountant liability in Ponzi schemes. Contact us today to receive your free case consultation.
