Ponzi Schemes

Ponzi Schemes

A Ponzi scheme is a form of financial fraud that pays profits to earlier investors with money from more recent investors. The scheme leads victims to believe that profits are coming from reliable investments decisions as opposed to other investors who are buying into the scheme. A Ponzi scheme can maintain the illusion of a sustainable business as long as new investors contribute new fund, and as long as most of the investors do not demand full repayment of their investment principal and still believe in the non-existent assets they are purported to own. Typically, Ponzi schemes require an initial investment and promise above average returns.  They use vague verbal guises such as “hedge futures trading”, “high-yield investment programs”, or “offshore investment” to describe their income strategy. If you believe you have been offered an investment in a Ponzi scheme, or if you believe you have made an investment in a Ponzi scheme, please contact us to assist you in your investigation of this claim.