Ponzi Scheme

A Ponzi scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned by the operator. Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the high returns requires an ever-increasing flow of money from new investors to sustain the scheme.The scheme is named after Charles Ponzi, who became notorious for using the technique in 1920.
Posts about Ponzi Scheme
  • The Different Types of White-Collar Crime Laws in Texas

    …) Antitrust violations Credit card fraud Computer/internet fraud Bankruptcy fraud Embezzlement Tax evasion Public corruption Economic espionage/trade secret theft Environmental law violations Counterfeiting Financial institution fraud Insurance fraud Kickbacks Mail fraud Phone/telemarketer fraud Government fraud Intellectual property theft or piracy Money…

    The Law Office of Matthew D. Sharp- 9 readers -
  • Significant Hedge Fund Failures

    … charged the hedge fund with conducting a Ponzi scheme. As a result, the company lost $500 million of investor money. Peloton Capital: Founded in 2005, this hedge fund was able to manage $3 billion in assets and reported spectacular returns 2006. However, in 2008 Peloton Capital was liquidated because of the subprime mortgage meltdown. Satellite…

    Eccleston Law Offices- 11 readers -
  • Former Texas Registered Rep Arrested for Internet Ponzi Scheme

    … Former Texas Registered Rep Arrested for Internet Ponzi Scheme Posted on Wednesday, February 8, 2017 at 9:31 AM From the Desk of Jim Eccleston at Eccleston Law LLC: Former registered rep Bobby Eugene Guess was arrested following his indictment on charges of securities fraud, theft, money laundering and engaging in organized criminal activity…

    Eccleston Law Offices- 11 readers -
  • Platinum Partners Hedge Fund Ponzi – Where Are the Banks?

    … Platinum Partners hedge fund is beginning to look like a Ponzi scheme. A very large Ponzi scheme. The New York Times says it could be one of the largest since Bernie Madoff. As much as $1 billion may be missing. On the heels of so many losses, the FBI moved in this week and arrested 7 people they say are behind the scheme. Included…

    Due Diligence- 9 readers -
  • Ponzi Scheme Operator Charged with Fraud

    … Ponzi Scheme Operator Charged with Fraud Posted on Wednesday, November 23, 2016 at 9:33 AM From the Desk of Jim Eccleston at Eccleston Law LLC: Carlos Maldonado, owner of Business Planning Resources International Corporation (BPRIC), and associated under the incorporation documents with Pet Card Systems, Inc., and Datavos Corporation…

    Eccleston Law Offices- 13 readers -
  • SEC Bars Advisor for Alleged Role in $15M Ponzi Scheme

    … SEC Bars Advisor for Alleged Role in $15M Ponzi Scheme Posted on Friday, November 4, 2016 at 12:07 PM From the Desk of Jim Eccleston at Eccleston Law LLC: The SEC has barred the President, Treasurer, Chief Compliance Officer and shareholder of Veros Partners, Inc. named Matthew D. Haab, pursuant to Section 203(f) of the Advisors Act…

    Eccleston Law Offices- 13 readers -
  • SEC Hits Troubled Texas REIT with Wells Notice

    … SEC Hits Troubled Texas REIT with Wells Notice Posted on Friday, October 28, 2016 at 9:08 AM From the Desk of Jim Eccleston at Eccleston Law LLC: The Securities and Exchange Commission has issued a Wells notice against troubled Texas real estate investment trust United Development Funding IV (UDF IV) as well as certain individuals associated…

    Eccleston Law Offices- 16 readers -
  • URGENT NOTICE for United Development Funding IV REIT

    …. Troubles for United Development Funding began in December of 2015 when a hedge fund accused the company of being a Ponzi scheme. In February things got worse after the company’s headquarters was raided by the FBI. The NASDAQ actions concern a specific United Development Funding REIT, UDF IV. That fund began in 2009 as a nontraded REIT and later…

    Due Diligence- 15 readers -
  • Cedar Brook Brokers Sanctioned in Connection with MedCap Fraud

    … during the time that its President Joseph Lampariello pleaded guilty to wire fraud. Lampariello was charged for conducting a Ponzi scheme that had marketed $2.2 billion in notes to more than 20,000 investors nationwide. FINRA's report cites specific instances in which it said the three Cedar Brook advisors sent emails to clients that contained…

    Eccleston Law Offices- 16 readers -
  • Mulholland Twins Sentenced 10 to 20 Years in Prison for Ponzi Scheme

    … Mulholland Twins Sentenced 10 to 20 Years in Prison for Ponzi Scheme Posted on Thursday, October 6, 2016 at 1:15 PM From the Desk of Jim Eccleston at Eccleston Law LLC: A Michigan judge has sentenced twins James Mulholland of St. Petersburg, Florida and Thomas Mulholland of Midland, Michigan to10 to 20 years in prison and ordered them to pay…

    Eccleston Law Offices- 10 readers -
  • Law Firm Found Responsible for Ponzi Scheme Fraud

    … From the Desk of Jim Eccleston at Eccleston Law LLC: In recent news, Allen Stanford was convicted for his role as the leader of a $7 billion Ponzi scheme. For much of the proceedings, it appeared as if the investors in this enormous Ponzi scheme would receive just a tiny fraction of their initial investments due to Stanford’s frivolous…

    Eccleston Law Offices- 17 readers -
  • Law Firm Responsible for Ponzi Scheme Losses

    … What does legal malpractice have to do with a Ponzi scheme? Plenty, if a law firm helped facilitate the scheme. When that happens, the lawyers can be held responsible for investor losses. Recently I wrote about the $7 billion Ponzi scheme perpetrated by “Sir” Allen Stanford. For a while, it looked like Stanford’s victims might only receive…

    Due Diligence- 20 readers -
  • California Pre-IPO Investment Ponzi Leads to SEC and U.S. Attorney's Charges

    … 60% returns for investing in pre-IPO stocks. The SEC named Jaswant Gill of San Diego and Javier Rios of National City along with their company JSG Capital Investment in the complaint. They are charged with operating a classic Ponzi scheme that uses new investor money to pay off older investors. The SEC has received an asset freeze for all three…

    Eccleston Law Offices- 17 readers -
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