The Ponzi Scheme is named after Charles Ponzi who, in 1920, offered and sold his supposed arbitrage investment throughout Boston, Massachusetts. He claimed he would double investors' money in 90 days through a bizarre plan to buy and resell international postal-reply coupons. The scheme ultimately proved to be merely a masquerade for paying off early investors with the deposits of later investors. And so the Ponzi Scheme became recognized as a distinct type of investment fraud in which the schemer finances its payout of returns to investors using money paid in by new investors. To keep the scheme afloat, these firms work to attract new money by promising investors high returns with little or no risk. The funds that a Ponzi Scheme generates are usually spent on enriching the manager of the scheme. Many of our readers are familiar with Ponzi Schemes. The most famous Ponzi Schemes in recent history were perpetrated by Bernie Madoff who has been sentenced to a 150 year prison term, and Scott Rothstein, a Florida attorney who will be in prison for 50 years.
By the time a Ponzi scheme collapses or investors have discovered the plan, it can be difficult or impossible for investors to get back their money from the perpetrator of the fraud. But that doesn’t mean the investor is without hope. The Ponzi Scheme generally could not have been perpetrated without the veil of legitimacy provided by attorneys and accountants and those who sell the investment from reputable brokerage offices. One of our recent class actions, the Tri-Med Ponzi Scheme, resulted in $4.3 million in settlements with a nationally recognized law firm and Florida accountants who allegedly aided and abetted the scheme.
Attorney Pearce and his staff members at The Law Offices of Robert Wayne Pearce, P.A. worked on a number of Ponzi Scheme disputes. We have represented investors in Federal court class actions filed against the perpetrators of the scheme along with the lawyers and accountants who aided and abetted the scheme. We have also sued unregistered financial advisors and other salespersons in state court for violation of the anti-fraud provisions of the Federal and state securities laws and failure to register themselves or securities as required under the securities laws. Our FINRA arbitrations against member firms focus upon the failure to supervise their stockbrokers who went against firm policies and sold investments that were not vetted by management and sold as part of a fraudulent scheme. We bring multiple types of claims against the FINRA registered stockbrokers caught up in the Ponzi Scheme, including violations of the antifraud and registration provisions of the securities laws, common law fraud, breach of fiduciary duty, negligence, breach of contract, and failure to follow FINRA’S Conduct Rules by engaging in unauthorized Private Securities Transactions and Selling Away.
Our attorneys are currently focused on investigating the alleged EquiAlt Funds Ponzi Scheme and reviewing investors’ cases against registered stockbrokers and unregistered salespersons who raised over $170 million from 1100 investors nationwide. We are investigating not only the salespersons but the law firm and accountants that represented the EquiAlt Funds. A brief description of our current EquiAlt Funds investigation and cases as well as links to other pages within our website and blog, are intended to help answer your questions and help you recover your losses can be found below:
- SEC Halts Alleged EquiAlt Ponzi Scheme: How Do Investors Recover Their Losses?
- Our Ponzi Scheme Blog Archive
The Law Offices of Robert Wayne Pearce, P.A. understands what is at stake in alternative investment law matters and constantly strives to secure the most favorable possible result. Attorney Pearce provides a complete review of your case and fully explains your legal options. The firm works to ensure that you have all of the information necessary to make a sound decision before any action is taken in your case.
For dedicated representation by a law firm with substantial experience in all kinds of securities, commodities and investment disputes, contact the firm by telephone at 561-338-0037 or toll free at 800-732-2889 or via e-mail. We may also be able to arrange a meeting with you at offices located in Boca Raton, Fort Lauderdale, Miami and West Palm Beach, Florida and elsewhere.