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

    … includes a range of non-violent crimes that the offender typically commits to attaining financial gains. Have you been accused of a white-collar crime in Texas? Contact The Law Office of Matthew D. Sharp today >> Overview of White-Collar Crime White-collar criminal offenses may include: Healthcare fraud Insider trading (securities fraud…

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

    … Significant Hedge Fund Failures Posted on Wednesday, March 1, 2017 at 10:48 AM From the Desk of Jim Eccleston at Eccleston Law LLC: Investing in a hedge fund is risky and can be catastrophic. Here is a list of 4 significant hedge fund failures. Bayou Group: Bayou Group in 2003 attracted a large amount of capital. However, in 2005 the SEC…

    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?

    … Mahany at *protected email* or by telephone at (414) 704-6731 (direct). Please visit our investor fraud recovery page too. All inquiries kept strictly confidential. MahanyLaw – America’s Fraud Recovery Lawyers The post Platinum Partners Hedge Fund Ponzi – Where Are the Banks? appeared first on Mahany Law. …

    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 -
  • FINRA Barred WFG Broker for Ponzi Scheme

    … in restitution to seven of his customers who were defrauded. In 2008, Mr. Dickinson recommend that his clients invest in ATM Financial Services (ATMF) when he knew, according to FINRA, that ATMA did not use its own funds to purchase ATM machines, but in fact, used funds to pay fictitious returns to earlier investors. Mr. Dickinson’s investors lost…

    Eccleston Law Offices- 10 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

    … with the REIT. The Wells notice against UDF IV stems from allegations that the fund has been operating for years like a ponzi scheme. According to the SEC filings, UDF IV, with $684 million in assets, is a mortgage and development REIT. This particular REIT promised investors returns of 8% to 10%. The FBI recently raided UDF’s office in suburban…

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

    … URGENT NOTICE for United Development Funding IV REIT October 22, 2016 by Brian Mahany Texas REIT company United Development Funding (UDF) has suffered much turmoil recently. This week the company announced it had received a Wells notice from the SEC. Named after the former chair of an SEC committee, a Wells notice is a notification letter…

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

    … Cedar Brook Brokers Sanctioned in Connection with MedCap Fraud Posted on Tuesday, October 11, 2016 at 9:13 AM From the Desk of Jim Eccleston at Eccleston Law LLC: In 2013, Cedar Brook Financial Partners, Michael Perlmuter, Howard Slater, and Azim Nakhooda had their securities licenses suspended and were fined after FINRA alleged…

    Eccleston Law Offices- 17 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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