FINRA Lawyers on Ponzi Schemes in History

Ponzi schemes are nothing new. Although many people may be familiar with Bernard Madoff, or even the scam's name sake Charles Ponzi, they may not be familiar with other fraudsters who routinely get away with millions. This type of securities fraud is responsible for millions of dollars in losses for private investors across the US, but so many of these stories end up getting lost in the news. Here a few of the worst that you may not have heard about:

• Michael Eugene Kelly allegedly targeted retired and elderly investors by offering enticing timeshare investments based in Cancun, Mexico. Investors believed that they would receive returns with very little risk, but the Ponzi scheme ended up taking $428 million instead. According to the SEC, at least $136 million of that amount came from investors' IRA/retirement accounts.
• Sarah Howe ran her alleged Ponzi scheme way back in 1880. What made her scheme work is the same kind of affinity fraud we continue to see today. Howe specifically targeted female investors with a "Ladies Deposit" that would offer 8% interest, but she ended up pocketing the cash for herself.
• Gerald Payne allegedly used his ministry to solicit investor cash. As a minister with Greater Ministries International, Payne's Ponzi scheme targeted his congregation with a precious metal investment plan that would "double the blessings" of participating investors. Unfortunately, Payne allegedly pocketed $500 million, and the majority of his investors never saw their cash again.

These schemes all allegedly took millions by targeting senior investors, preying on gender or religious similarities ("affinity fraud"), or otherwise taking advantage of vulnerable investors' trust. Even sophisticated investors are taken in by the Ponzi scheme, as it can be hard to detect and so many of these scammers are willing to stoop so low to line their own pockets.

If you need help after losing money to a Ponzi scheme, contact an experienced and understanding FINRA lawyer today at 1-866-8-BROKER (1-866-827-6537) to talk about your options. The securities fraud lawyers with the Law Firm of Meyer Wilson have represented more than 800 investors nationwide in stockbroker mediation, arbitration, and litigation.

To learn more about protecting yourself from investment fraud, request your FREE copy of our book Five Signs of Investment Fraud ...And What to Do if it's Happened to You.