Ponzi schemes are some of the most intriguing forms of fraud in the industry. While most victims in New York do not realize they are losing money, there are also many involved in the scheme who do not know they are participating in a crime. The laws and rules can be confusing, so it is important to understand the basics. At the Sapone and Petrillo law firm, we want to help those who have been wrongly accused or mistakenly involved in a Ponzi scheme. Here is everything you need to know about this type of fraud.
The Financial Times reports that dozens of Ponzi schemes are uncovered every year, totaling an average of $2.4 billion. The targets of these crimes are often wealthy individuals interested in investing. One major problem with Ponzi schemes is that they claim to yield positive returns over a long period of time using complex strategies that are often described as a secret from other investors.
Ponzi schemes can arise in many different forms. Some recently uncovered ventures included promises to make investors profits from secondary ticket sales to venues like Adele, The Rolling Stones, Bob Dylan and the Broadway musical Hamilton. Securitized loans can also be a method for scheming investors out of money.
While Ponzi schemes may seem simple, charismatic conspirators can often mask the criminal aspects of the arrangement and involve people unknowingly. It can be difficult for naïve participants to blow the whistle once they realize the truth. If you have been accused of fraudulent activity or feel that you may have been involved in a Ponzi scheme, visit our web page to learn more.