Protecting Clients Nationwide Against Ponzi Schemes
Ponzi schemes can sometimes be sold by stockbrokers and other professionals, including real estate agents and CPAs. Typically, the only way to get your money back after you have invested in a Ponzi scheme is to go after a related deep pocket, as most of the time the money given to the actual Ponzi scheme perpetrator has disappeared by the time you realize what happened. Hopefully you purchased your investment in the Ponzi scheme through one of the professionals described above, such as a stockbroker, real estate agent or CPA, so you can pursue your lost funds from that liable party, who may have insurance or otherwise have deep pockets.
When stockbrokers, real estate agents and CPAs sell Ponzi schemes, commonly called pyramid schemes, this is negligence a breach of fiduciary duty that does allow for a legal claim to recover lost funds. An example of a modern-day Ponzi scheme is that involving Bernie Madoff, where he defrauded investors of billions of dollars. Most investors who can are going after the people or entities who facilitated the Madoff investments, including stockbrokers, CPAs and feeder funds.
Jeffrey A. Feldman, our San Francisco lawyer, has been handling investment fraud litigation and arbitration since 1991. He provides experienced, high-quality representation to investors in California and throughout the country in claims involving investment crimes such as Ponzi schemes, and has experience suing the stockbrokers, real estate agents and CPAs who advised their clients to invest in Ponzi Schemes.
Helping You Identify Whether You Are Involved In A Ponzi Scheme
The basic premise of a Ponzi scheme involves the Ponzi scheme perpetrator paying off old investors with new investors’ money, while taking a lot of the money for himself. Where valid investments make gains from returns on original investments, fraudulent investments such as Ponzi schemes rely heavily on using new investment money to pay back previous investors. Ponzi schemes often involve the sale of promissory notes or interests in real estate, including tenancies in common, or TICs.
Initially, most Ponzi schemes and other investment crimes appear not only to be valid, but also to have a high-return on investment. The first investors often receive extensive returns on their investments, and then become spokespeople for the Ponzi scheme. However, this does not last, and the scam finally becomes public when the Ponzi scheme collapses.
Seeking Your Lost Funds In Arbitration Or Litigation
If you have fallen victim to a Ponzi scheme, you do have legal recourse available to you. Most often, our firm can not only seek to get you back what you lost in your investment from the broker, real estate agent or CPA, but we can also seek compensation from the firm who managed the individual who defrauded you.
Most often, these cases are settled through securities arbitration or securities litigation. If a settlement cannot be reached, our lawyers will aggressively represent your interests at hearing or trial. When possible, we will pursue damages to cover the funds you lost as well as punitive damages, lost interest and attorneys’ fees.
Contact The Law Offices Of Jeffrey A. Feldman Today
If you suspect that you or someone you know has fallen victim to a Ponzi scheme or other financial crime, contact us online. We provide free initial consultations to new clients.
Handling Securities-Related Disputes, Arbitration, and Litigation
in California and Nationwide-Call (415) 391-5555
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The Law Offices of Jeffrey A. Feldman