What Is A Ponzi Scam?

If Your Broker Involved You In This Type of Investment Scheme, You May Be Able To Sue For Damages

Shepherd Smith Edwards and Kantas Ponzi Scam Attorneys (investorlawyers.com) represents those who have suffered losses because of broker fraud or negligence. This can include, whether intentionally or not, involving investors in Ponzi scams. These types of investment schemes can lead to serious losses. It is devastating to not only lose money because of fraud, but also to have been exposed to the scam by the financial advisor that you trusted to protect your funds and grow your assets.

If you are an investor who wants to explore your legal options and determine whether you have grounds for a broker negligence claim over your Ponzi scam losses, call (800) 259-9010.

What Is A Ponzi Scam and What Does It Have To Do With Broker Fraud?

Named after Charles Ponzi, this is a kind of fraud where earlier investors are paid with money from newer investors. Investors are led to believe these are actual returns when, in fact, there are no profits. Securing more investors is the way to keep this type of scheme going. Ponzi scammers will usually promise high returns while claiming there are little to no risks. Yet inevitably, this type of fraud will fail when there aren’t enough new investors being added or too many of those who are already investors wanting to withdraw their money.

Perhaps the most famous Ponzi Fraud in recent years is the $65B Madoff Ponzi Scam. Run by Bernard Madoff, thousands of investors, ranging from retail investors to high-net-worth individual investors (including many famous people), and institutional investors, ended up blindsided to discover they were victims of a mass scam. Many of them lost their retirement and life savings. A slew of investor lawsuits were filed, including against the different brokerage firms and feeder funds that failed to protect investors and perhaps even enabled the Madoff Ponzi scam from happening, whether they were aware of the fraud or not.

Brokerage firms have a duty to protect customers’ money and keep them away from anything fraudulent. In recent years, Shepherd Smith Edwards and Kantas Ponzi Scam Fraud Attorneys have sued many broker-dealers because of losses sustained by investors in Ponzi frauds and investment scams. Unfortunately, many of these brokers failed to conduct the necessary due diligence that could have prevented them from involving their customers in these purported schemes. There have also been instances in which the Ponzi scam was committed by a financial advisor who was registered with a broker-dealer and exploited its customers.

Why Hire Our Ponzi Scam Fraud Attorneys?

With more than 100 years of collective experience in securities law and the securities industry, our securities firm has the skills, knowledge, and resources to pursue damages on behalf of Ponzi scam victims against their brokers and investment advisers. This is not the kind of claim you should pursue without savvy securities lawyers who know how to maximize your chances for a full recovery.

We represent investors in arbitration, mediation, and litigation. Over the years, we have helped thousands of clients to collectively recoup many millions of dollars caused by fraud, including Ponzi scams, affinity scams, and other types of investment schemes.