A Ponzi scheme is a fraudulent investment operation. The operator, either an individual or organization, pays returns to its investors from new capital. This capital is paid by new investors. The returns are not from profit earned by the operator. Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments. They propose short-term returns that are abnormally high. Alternatively, the returns can be unusually consistent.
The attorneys at Sallah Astarita & Cox, LLC have represented investors in numerous Ponzi Schemes. These include the Madoff Ponzi Scheme and Agape World, Inc. They also include EminiFX. They have also represented court-appointed receivers charged with recovering investments. This includes the $70 million JCS Enterprises scheme. They have been appointed as receivers and corporate monitors. They have also represented individuals and entities who are accused of operating a Ponzi scheme by regulators and investors. Call 212-509-6544 if you believe you have been a victim of a Ponzi Scheme.
Ponzi schemes occasionally begin as legitimate businesses, until the business fails to achieve the returns expected. The business becomes a Ponzi scheme if it then continues under fraudulent terms. Whatever the initial situation, maintaining high returns demands a continuous flow of money. This money must come from new investors to sustain the scheme.
The scheme is named after Charles Ponzi, who became notorious for using the technique in 1920. Ponzi’s original scheme was based on the arbitrage of international reply coupons for postage stamps. However, he soon diverted investors’ money to make payments to earlier investors and himself.
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Call 212-509-6544 if you have questions or concerns about Ponzi Schemes, or if the SEC is accusing you of operating a Ponzi Scheme.
The attorneys at Sallah Astarita & Cox, LLC are former SEC Staff Attorneys and brokerage firm counsel, with over 100 years of collective experience. If you have received a subpoena from the SEC, a document request from FINRA, or have a dispute with a brokerage firm, call 212-509-6544 for a free consultation. The firm represents investors and financial professionals nationwide.
Mark Astarita is a nationally recognized securities attorney, who represents investors, financial professionals and firms in securities litigation, arbitration and regulatory matters, including SEC and FINRA investigations and enforcement proceedings.
He is a partner in the national securities law firm Sallah Astarita & Cox, LLC, and the founder of The Securities Law Home Page - SECLaw.com, which was one of the first legal topic sites on the Internet. It went online in 1995 and is updated daily with news, commentary and securities law related links.
