I received some payments from an investment that later turned out to be a Ponzi scheme. What happens to me?
| November 18, 2019
Before I answer your question, I strongly encourage you to speak directly with a Ponzi scheme attorney. Because Ponzi scheme cases can be so complicated, it’s impossible to offer practical guidance without more information about the specifics of your situation.
However, in general, what happens to you will depend on many factors, including whether you received more than you invested, when you invested or received returns, and what happens during the potential criminal investigation. In some cases, if you did not receive more than you invested in the Ponzi scheme, you may be able to further pursue your remaining losses through mediation, arbitration, or litigation proceedings against the broker, financial advisor, or brokerage firm that promoted the scheme. In cases where you have received more than you invested, you may be asked to forfeit some or all of the proceeds to help others in recovering their losses from the scam in the criminal case even though you are innocent and were unaware of the fraud.
It’s important to remember that even experienced investors can be taken in by investment scams like Ponzi schemes.
One of the best actions you can take in a situation like this is to gather any documents and information you have about the Ponzi scheme, including your communications with the Ponzi scheme promoter, your account statements, and other materials related to the alleged investment or investment company involved in the scheme. After that, you should consider reaching out to an experienced Ponzi scheme attorney for further legal guidance.
If you need help, you can schedule a completely free and confidential case evaluation with one of our securities fraud attorneys today. Just give us a call or fill our online contact form for more information.
Attorney David Meyer has published a post for the American Bar Association regarding the aftermath of a Ponzi scheme. You can read the article by clicking here.