Ponzi Schemes

What is a Ponzi scheme?

A Ponzi scheme is a type of fraud that occurs when the operator of the scheme pays existing investors with funds collected from new investors, rather than from actual returns. Oftentimes, investors are told their investments will yield high returns with little risk. However, in most Ponzi schemes, the operator never invests the money at all.

How can you identify a Ponzi scheme?

Some key characteristics of Ponzi schemes are: unusually high returns promised on original investments with little to no risk, unlicensed sellers or unregistered investments, vague phrases such as “high-yield investments” or “offshore investments,” claims that exclusive investment strategies must be kept secret for competitive purposes, overly consistent returns, and difficulty receiving payments or cashing out.

What is the difference between a Ponzi scheme and a pyramid scheme?

In a Ponzi scheme, investors give money to an operator or portfolio manager and are paid out from the money contributed by later investors. In a pyramid scheme, the initial operator recruits investors who in turn recruit additional investors and so on.

What can you do if you’ve lost money in a Ponzi scheme?

If you believe you have lost money in a Ponzi scheme, you should have a trusted investment fraud attorney review your case and advise you on next steps.


Take the next steps to find out if you have a claim:

Step 1.

Talk to an Experienced Attorney Today

Call and speak to one of our attorneys* for a no-cost consultation to discuss your situation, answer your questions, and help you determine the next steps. This call usually takes about 15 minutes, but we are happy to talk to you as long as you would like!

Step 2.

Quick Review of Your Paperwork

If we think you might have a case, we will need to review a few basic documents. If we determine you have a case, then you will have the option to hire us as your attorneys to pursue it.

Step 3.

Signed Attorney/Client Agreement

If you decide to hire us to pursue your case, we will have you sign an attorney-client agreement so we can begin the process of trying to recover your losses.*

*In the vast majority of cases, our agreement is contingent – meaning you won’t owe us any money unless we recover money for you.

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