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Updated at 2021-10-27 11:27:46 UTC

Victim of a Ponzi Scheme in Miami? Don't Call Your Broker, Instead Hire a Lawyer.

Most people are still unaware that thousands of Ponzi schemes are being perpetrated against naïve investors in the United States at any given time.

When the scam falls apart, investors are left wondering how they can get their money back. The first step is invariably hiring a Miami Ponzi scheme lawyer.

Pyramid Schemes Lawyer in Miami | Stroleny Law, P.A.


What is a Ponzi Scheme?

A Ponzi scheme is a deceptive investment scheme in which investors are paid "returns" from their own money or money contributed by later investors rather than earned revenue.

These are illicit schemes that work on the idea of using money from new investors to pay off prior investors. When there aren't enough new investors, this never-ending and destructive cycle comes to an end.


What are the Legal Involvements?

Ponzi schemes are a type of investment fraud that is extremely difficult to detect. Typical legal elements of a Ponzi scheme include:

  • A complex combination of circumstances.
  • There are several state and federal securities authorities.
  • Criminal prosecutors and law enforcement authorities.
  • A large number of investors have been harmed.
  • Several defendants could be held legally accountable.

What Can Be Done

Many Ponzi scheme victims, understandably, wish to sue the Ponzi schemer in civil court. From a practical aspect, this strategy is frequently ineffective. When Ponzi schemes are detected, they are common to have spent all or most of their money. So, while you could sue the Ponzi schemer and very probably obtain a court judgment against them, it's unlikely you'll get any money back at the end of the day.


Brokerage Firms

One of the main reasons why victims of Ponzi schemes should seek the advice of an experienced investment fraud lawyer as soon as possible is that brokerage firms and other third parties may be held legally liable for the Ponzi scheme.

In many situations, a third-party actor either participated in the Ponzi scheme or allowed it to continue due to negligence. Even if they were not technically the fraud perpetrators, these defendants could be held financially accountable for an investor's losses.

By focusing their complaints on the supervising brokerage company and other third parties who may be held legally accountable for the Ponzi schemer's misbehavior and have the financial wherewithal to pay a judgment, investors have a much better chance of recovering their losses.

Your business law Ponzi scheme lawyer will work with you to investigate all options for obtaining complete and fair financial compensation for your investment losses.



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