ponzi scheme Tag

How Does a Ponzi Scheme Work and What is The Penalty if Caught?

Federal and state statutes provide both criminal and civil penalties that may apply to various activities that are commonly known as Ponzi Schemes. The various laws governing such activities are numerous and complex requiring the services of an experienced federal defense lawyer. What Is a Ponzi Scheme? A Ponzi arrangement is a fraudulent investment scam. Investors are promised high return rates with little or no risk. There is no real underlying source of profit or gain. Rather, return on investment for earlier investors is generated by money invested by later investors. Initially, a Ponzi schemer attracts new investors by paying the promised high...