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

    …. Both Texas and U.S. legislation list activities that are typically considered white-collar crimes: The U.S. Constitution’s Commerce Clause authorizes federal authorities to regular white-collar crimes. Multiple federal agencies, including the Environmental Protection Agency (EPA), SEC, FBI, U.S. Customs, Department of Labor (DOL), U.S. Postal Service…

    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?

    … of Platinum’s Investor Relations and Finance Departments; Daniel Small, a former Managing Director and co-Portfolio Manager of Platinum; and Jeffrey Shulse, the former Chief Executive Officer and Chief Financial Officer of Black Elk Energy Offshore Operations, LLC According to the U.S. Attorney’s Office, Nordlicht, Levy, Landesman, SanFilippo and Mann…

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

    …, was arrested and charged with securities fraud and bank fraud . From 2007 through 2012, Mr. Maldonado along with the help of others defrauded over a hundred individuals on behalf of BPRIC. Mr. Maldonado raised over $5 million from investors by soliciting individuals throughout Puerto Rico and the lower 48 states. According to the Department of Justice…

    Eccleston Law Offices- 13 readers -
  • FINRA Barred WFG Broker for Ponzi Scheme

    … approximately $1.02 million because he failed to recognize or ignored the fact that something was wrong when he was shown on many occasions incomplete and inconsistence performance histories of the ATMs. Mr. Dickinson was involved with ATMA before 2008, and in 2007 he sold more than $1 million in limited partnership interests in ATM Alliance (ATMA…

    Eccleston Law Offices- 10 readers -
  • SEC Bars Advisor for Alleged Role in $15M Ponzi Scheme

    … to December 2015. The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of securities for financial advisors including breakaway broker services, employment matters, strategic consulting and counseling, broker…

    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

    … 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- 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

    … sued C&P along with three other law firms (Proskauer RoseLLP, Greenberg Traurig, and Hunton & Williams), for their role in facilitating the Ponzi scheme. At the peak of the Stanford Financial Group Ponzi scheme, Stanford maintained an estimated $50 billion in investment funds from close to 30,000 clients in 140 countries. Unfortunately…

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

    … known law firms faced similar claims, Greenberg Traurig and Hunton & Williams. Brief History of the Stanford Ponzi Scheme According to the lawsuit against C&P, Stanford started out his career as a fitness center owner in Mexia, Texas. He soon went bankrupt but that didn’t stop him. Between the 1980’s and his ultimate arrest in 2009…

    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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