Ponzi schemes often involve a network of culpable parties, who may have either knowingly or negligently facilitated the fraud. This can expand the scope of liability beyond the principal fraudster and introduces new complexities for injured investors.
A Ponzi scheme attorney at Silver Law Group understands Florida’s unique financial landscape. We thoroughly investigate liability in South Florida Ponzi schemes and aggressively pursue recovery on behalf of our clients.
Third parties who enabled the Ponzi scheme, even if they did not orchestrate it, can be held civilly liable for investor losses. This is often the most critical avenue for recovery, as actual perpetrators frequently have few remaining assets by the time the Ponzi scheme is discovered. Here are some examples of potential liable parties:
The scale and complexity of Ponzi schemes create numerous hurdles for litigation and recovery. South Florida Ponzi scheme promoters often use shell companies, offshore accounts, and multiple financial instruments to conceal and launder money, making it difficult to trace the flow of funds and determine liability.
Silver Law Group can investigate and find additional defendants with substantial financial resources beyond the primary fraudster, including firms, investment advisors, or directors and officers of companies involved in the scheme. We can help you pursue different paths for financial recovery, and we do so on a contingency fee basis.
The optimal strategy for victims of South Florida Ponzi schemes seeking financial recovery depends on the details of liability in each particular case. Victims of Ponzi schemes have several legal recourse options, including joining a class action lawsuit, where costs are shared among the group, and any settlement or judgment is divided among all class members.
The Securities and Exchange Commission and the Department of Justice may bring enforcement actions against Ponzi scheme operators. Victims must file a claim with the government to be considered for any distribution of funds, and if the operator files for bankruptcy, a court-appointed trustee will control the assets. Victims can file a claim in the bankruptcy court to attempt to recover their losses.
When a Ponzi scheme collapses, a court may also appoint a receiver to take control of the fraudulent company’s assets. The receiver’s role is to recover assets, including through clawback lawsuits against investors who received fictitious profits. The receiver then creates a plan to distribute the recovered funds equitably among the victims.
Our firm represents injured investors in various legal actions, including class action lawsuits that consolidate the claims of multiple victims. We also regularly pursue cases involving third-party liability in South Florida Ponzi schemes against entities that facilitated the fraud and have the resources to compensate victims.
If you have lost money to a suspected Ponzi scheme, do not hesitate to contact Silver Law Group today to request your free case evaluation and discuss your situation.
