Ponzi schemes are a specific type of investment fraud that can lure even experienced and sophisticated investors. Fraudsters often target successful investors to participate in their schemes. Unfortunately, Ponzi schemes inevitably collapse, and nearly everyone who invests in them loses their money.
A South Florida Ponzi scheme lawyer can fight on your behalf; we will get your money back, or you pay us nothing. Silver Law Group’s experienced securities fraud attorneys have successfully represented investors nationwide who were victims of Ponzi schemes and we have a great track record of recovering losses.
Individuals operating Ponzi schemes often establish fictional companies to entice investors. They typically create seemingly authentic financial statements and prospectuses and may convince respected community members to help promote the scheme. Sometimes, these promoters are part of the scam, but in many cases, they they are unaware of the truth.
Their sales pitch promises high returns and little risk, and early investors often see substantial returns. However, the scheme relies on a constant flow of new investors to provide the funds necessary to pay returns to earlier investors. Eventually, the scheme collapses, and investors lose their money; those who reaped profits in the initial period of the scheme may have to return the funds.
Some of the most infamous scams in history, such as the Bernie Madoff scandal, were Ponzi schemes. The promoters of these scams often create a cachet around the investment, and early investors who reap generous returns may not scrutinize the operation as carefully as in other circumstances. If someone defrauded you with a well-constructed Ponzi scheme in South Florida, an experienced lawyer from Silver Law Group can help you recover your funds.
Following the collapse of a Ponzi scheme, the operators typically face criminal charges. If you have been a victim of such a scheme, criminal proceedings will not result in the return of your funds, even if the perpetrators are convicted. To recoup your losses, you must pursue other remedies. FINRA arbitration is one option but it is not the only one. Ponzi scheme lawyers can help South Florida investors band together in a lawsuit.
By the time a Ponzi scheme collapses, hundreds of investors may have lost funds to the fraud. Some investors may have lost their life savings, while others may have lost just a few thousand dollars. Regardless, all the victims are entitled to try to recover their money.
A class action lawsuit is the most efficient means of pursuing compensation for financial fraud. Investors who lost money in the same scheme can work together to bring a lawsuit, sharing information that can help hold the Ponzi schemers liable.
In most cases, the courts appoint a bankruptcy trustee to oversee the distribution of the scheme’s remaining assets. Generally, investors with valid claims receive a pro-rata share of the available funds. Early investors who made a net profit from the scheme may have to contribute their earnings to the pool of funds available for investors who suffered a net loss.
A well-conceived Ponzi scheme can allow a scammer to steal huge sums of money for their own purposes. It can fool even experienced investors and may last for years before collapsing.
If you have been scammed in a Ponzi scheme, there is no reason for embarrassment. Instead, focus on recovering at least some of your lost funds, potentially as a class action with other people in your situation. Contact a South Florida Ponzi scheme lawyer at Silver Law Group immediately for help. We work on a contingency fee basis and are well-respected across the country for our work in seeking justice for this type of fraud.
