A “Ponzi Scheme” refers to a fraudulent investment scheme where investors are paid returns that are really the investors’ own money or the money of subsequent investors rather than any actual profit from the purported investment.
Normally, a “Ponzi Scheme” will pay out a higher than normal rate of returns to entice new investors and greater investment from existing investors. In these schemes, the “thing” being invested in either doesn’t really exist or is a sham financial product of no real value.
Representing Clients In Criminal And Civil Litigation
Federal and State government agencies are aggressively investigating financial crimes since the beginning of the current financial crisis. The Department of Justice (DOJ) has set up a special financial crimes task force to investigate and prosecute Ponzi Scheme perpetrators and other investment fraud.
Hilder & Associates, P.C., has advised and represented targeted individuals and businesses accused of complex fraud schemes in both the criminal and civil litigation context. We have also launched internal investigations to reveal fraudulent schemes of which the business or client was unaware and helped set up mechanisms to prevent such activities from the beginning.
Implications Of A Ponzi Scheme Investigation
The frequency of prosecutions in this area is increasing and the penalties are severe. The DOJ has criminally prosecuted defendants for perpetrating Ponzi Schemes and sought prison terms that result in life sentences.
Additionally, the Securities and Exchange Commission has investigated multiple investment fraud schemes and sought enforcement actions for numerous market manipulation schemes. Market manipulation schemes are characterized by the dissemination of false information to cause dramatic, upward price shifts in stock price, and the subsequent sale of such stocks when the market is artificially high.
Call Our Houston Attorneys For Investment Fraud Defense
For more information or to schedule an appointment with an experienced lawyer regarding a Ponzi Scheme charge, please contact us by sending an email or by calling us toll-free at 888-659-8742 or locally at 713-234-1416.