Ponzi Scheme vs Pyramid Scheme

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Since 1999 our law firm has recovered more than $350,000,000 for victims of investment fraud and misconduct.
  • Jury Verdict Won Against Prudential Securities $262 Million
  • Recovered for 100-Year Old Widow $30 Million
  • Recovered in Retirement Losses $10 Million
  • Recovered for a Large Group of Individual Investors $6.5 Million
  • Recovered for Elderly Victim in Ponzi Scheme Case $3.8 Million
  • Recovered for Elderly Ponzi Scheme Victim $3.2 Million
  • Recovered for More Than 50 Families of Ponzi Scheme in California $3.2 Million
  • Recovered for 35 Families in Northeast Ohio $3.1 Million
  • Losses Recovered for 20 Retirees $3 Million
  • Recovered for Retired Physician Against Major Wall Street Firm Prior to Filing FINRA Arbitration $2.5 Million
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Ponzi Scheme Vs. Pyramid Scheme

With the current prevalence of the Ponzi schemeacross the nation, the terms "Ponzi scheme" and "pyramid scheme" are often used interchangeably. There is a shade of difference between the two, however. In a classic pyramid scheme, you generally pay into an offer that claims you can make money for yourself by recruiting others into the scheme. Usually, those recruits will then pay their portion to you, and so on.

Watch as Attorney Dave Meyer explains more about Ponzi schemes.

Learn more about the aftermath of a Ponzi scheme by reading Attorney David Meyer's post for the American Bar Association.

You end up paying into a pyramid scheme with hopes of a greater return when you find more recruits. In a Ponzi scheme, although the structure seems very similar, you aren't usually required to do any more work than just handing over money to be invested. This is part of what makes the Ponzi scheme so effective. You usually aren't aware of the need for additional recruits to keep the scam rolling, and you don't have to work for it, either. The Ponzi schemer takes your money and promises to do all the work for you, and they're often long gone before you even realize what's happened.

If you have been the victim of a Ponzi scheme and have questions about FINRA mediation, arbitration, or litigation, call the respected securities fraud attorneys with Meyer Wilson today. By calling you will be able to meet with one of our experienced FINRA lawyers in a FREE consultation.

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Meyer Wilson has represented over 1,000 individual investors in high-stakes claims across the country, and has recovered over $350 million on their behalves. See what former clients have to say about our team.

  • “I primarily worked with Courtney Werning throughout the process and she was informative and knowledgeable. I trusted and fully recommend Courtney and her team.”

    - S.R.
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    - R.G.
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    - S.W.
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    - D.V.
  • “Chad would take the time to call and talk with me. His explanations were always clear and concise. I also appreciate all the effort put into the details and statistics required to argue this case.”

    - P.N.
  • “Meyer Wilson was able to produce the results that we felt were obvious and warranted while several other firms and even state offices simply had trouble understanding let alone moving the case forward.”

    - B.K.
  • “My overall experience was positive and I would encourage anyone who even thinks they have been a victim of stockbroker misconduct to call David.”

    - S.T.
  • “Meyer Wilson represented me in a suit brought last year against my brokerage firm, securing a very fair and equitable settlement for me.”

    - R.G., M.D.
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