A Ponzi scheme is a fraudulent investment scheme that promises high returns to investors using the money from new investors, rather than from legitimate profits. The scam is named after Charles Ponzi, who became infamous for his large-scale scam in the early 20th century.
The scheme works by attracting new investors and using their funds to pay returns to earlier investors, creating the appearance of a successful investment opportunity. However, because the returns are not based on legitimate profits, the scheme is unsustainable and will eventually collapse when there are not enough new investors to pay out returns to earlier investors. Those involved in the scheme may lose all of their investments, while earlier investors may face significant financial losses if the scheme is discovered and assets are seized by authorities. It’s important to thoroughly research any investment opportunity and to be wary of promises of high returns that seem too good to be true
Free Legal Advice
Victims of a Ponzi scheme should seek legal advice as soon as possible. They should contact an attorney, file a complaint with law enforcement, and file a claim with the receiver or trustee. It’s also important to cooperate with authorities and consider filing a lawsuit. Taking these steps can increase the chances of recovering some or all of the losses suffered due to the Ponzi scheme.
If you are a victim of such scam and wish to hire our office or have any questions regarding your legal status you can contact us via our DefendMe Platform (https://defendme.global/) or via email office@defendme.global.