Ponzi scheme is the common description of an investment operation where unusually high profits are paid to investors out of the money paid into the investment plan by new investors, as opposed to legitimate profits generated by business activity. In a Ponzi scheme, investors are usually offered high returns on their investment in order to persuade new investors to join into the investment scheme. These high investor profits demand that the flow of money from newly acquired investors increase in order to keep the scheme going.
It has been our experience that many of these types of cases involve individuals who did not set out to defraud any investor. Rather, the investment plan started falling apart due to bad investments or declining market conditions and investors begin to voice their dissatisfaction. Once complaints are made to the FBI, SEC, FTC, or CFTC, the investigatory period begins. It is at this critical point in time that having a qualified criminal defense attorney to represent your interests is imperative.
Having a knowledgeable criminal defense lawyer representing you in response to subpoenas issued for business records or testimony can make the difference between getting arrested or the investigations simply closing due to insufficiency of evidence. By securing an experienced attorney, you can protect yourself from a possible criminal filing for orchestrating a Ponzi scheme, securities fraud or for new charges that can come about in the course of any investigation, such as obstruction of justice or perjury.