Attorneys David P. Meyer and Courtney M. Werning co-authored an article on Ponzi schemes and
brokerage firms entitled
The Aftermath of a Ponzi Scheme Collapse: Liability of Brokerage Firms. The article details how Ponzi schemes operate, defrauding investors, until they can no longer sustain themselves and collapse. Meyer and Werning explain how brokerage firms are often implicated in Ponzi schemes when their registered brokers are the ones running the Ponzi schemes. Large brokerage firms like JP Morgan or Morgan Stanley can be held directly liable for failure to supervise their brokers.
Click here to read the full article.