Everyone has heard the term Ponzi scheme, and most people know it is a form of investment fraud. However, the majority of the public is not clear on how these scams work, which is why fraudsters often defraud hundreds or even thousands of investors before getting caught. If you were the victim of a scam, a Ponzi scheme lawyer serving Phoenix may be able to help.
At Meyer Wilson, our team of experienced Ponzi scheme lawyers has a long history of helping our clients recover the losses to their investments.
Since 1999, we have secured over $350 million for those we serve. Contact us today by phone or through our website to set up a free case review with one of our Phoenix investment fraud lawyers.
How Ponzi Schemes Work
Ponzi schemes are a form of investment fraud in which no money is actually earned, and investors see returns on their investments paid out of money put into the scheme by newer investors. These schemes are similar to pyramid schemes, with the main difference being that they do not require investors to recruit others to invest.
How a Scammer Sets up a Ponzi Scheme
When creating a Ponzi scheme, there are several simple steps a fraudster will take to defraud investors. Steps in the process include:
- The creation of an investment idea that promises significant imagined financial returns
- The recruitment of a small group of initial investors
- Sitting on the money for a while before returning a portion to the investors as their promised return on investment
- Persuading the investors to reinvest based on the substantial returns they have already seen
- Bringing in new investors to the scheme using the supposed gains of the original group as a proof of investment concept
- Use money invested by newer investors to continue to pay off earlier investors
- Continue to bring more and more people into the investment scheme
- Cut off communication with all investors and disappear with their money
Since Ponzi schemes are based on the principle of paying older investors with money from newer investors, they all fall apart eventually, as there comes a point when the fraudster can no longer find enough new investors to pay the older investors. However, this can take years and it can be hard to know you are being defrauded until the whole thing collapses.
If the fraudster was associated with a brokerage firm , in order to recover compensation for your losses, you will likely have to file an arbitration claim with the Financial Industry Regulatory Authority (FINRA). It’s important to note that all FINRA arbitration decisions are legally binding, and in most cases, there is no option for appeal.
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$350 Million for Our Clients Nationwide.
Why Work With the Team at Meyer Wilson
After suffering financial losses in a Ponzi scheme, you need to secure the services of an experienced Ponzi scheme lawyer serving Phoenix, AZ, to help you recover the compensation you need and deserve. Our experienced legal team is here to help.
For more than 25 years, we have assisted over a thousand victims of investment misconduct in securing the compensation they deserve from those responsible for their losses. Here’s what distinguishes us from other investment fraud firms:
- We maintain a balanced caseload, enabling us to give each client and case the focused attention they need.
- We emphasize responsiveness and transparency in all our communications with clients.
- Our team has over 75 years of combined experience in managing investment fraud cases.
- We have successfully recovered more than $350 million for our clients.
- From the beginning, we treat every case as if it will go to trial or a FINRA arbitration hearing, which provides us with leverage during settlement negotiations and ensures we are fully prepared for litigation if necessary.
- We employ advanced technology in every aspect of our practice.
- We operate on a contingency fee basis, which means you won’t owe us anything for our legal services unless we successfully recover damages on your behalf.
Our firm is focused on taking on investment fraud cases in which the party guilty of misconduct is associated with an investment firm. Our experienced Ponzi scheme attorneys serving Phoenix, AZ, can help you recover your money after suffering fraud committed by a financial advisor or stockbroker. We do not handle cases of fraud committed by individuals.
When to Reach Out to an Experienced Phoenix Ponzi Scheme Attorney
It’s important to reach out to an experienced attorney as soon as possible when you discover that you are caught up in a Ponzi scheme. Unfortunately, because of how these schemes are structured, it can be difficult to figure out you are being taken advantage of until you have already suffered significant losses.
It might be time to reach out to an experienced attorney if you:
- Begin to notice diminishing returns on your investment
- Are contacted by another victim of the scam or their attorney
- Discover that you have suffered financial losses in a Ponzi scheme
Our experienced team can help whether you are suing your financial advisor or initiating a FINRA arbitration claim.
Our lawyers are nationwide leaders in investment fraud cases.
Signs to Look Out for to Help You Avoid Ponzi Schemes and Other Forms of Investment Fraud
While our experienced Ponzi scheme lawyers serving Phoenix can help you recover compensation if you have suffered financial losses, the best way to protect yourself is by identifying fraudulent investment schemes before entrusting your money to an unreliable source.
One of the main things to look out for is an investment opportunity that promises financial returns that sound too good to be true. As in most things in life, if something sounds too good to be true, it probably is. It’s critical that you proceed with caution and consult an independent financial advisor before putting your money into a potentially fraudulent scheme.
Another thing to look out for is an investment opportunity with limited information. If there is no thorough documentation of the structure of the investment or the numbers don’t appear to add up, steering clear is likely going to be your best option.
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Reach Out to an Experienced Ponzi Scheme Attorney Serving Phoenix Today
At Meyer Wilson, we are ready to help you pursue compensation if you have suffered financial losses after investing in a Ponzi scheme. We are committed to helping those who have suffered financial losses due to misconduct.
Contact us today to set up your free, no-obligation case consultation, and check out our reviews to get a better idea of the type of service we provide to our clients.
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