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  • Attorneys David Meyer and Matthew Wilson have been selected to the list of Super Lawyers since 2011 and 2015 respectively.

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Ponzi Scheme vs. Pyramid Scheme

With the current prevalence of the Ponzi scheme across 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.

Need More Information?

Investment misconduct can be complex and confusing. That’s why we’re here to help you. Visit our Common Questions page to find in depth answers directly from our attorneys. Get More Answers
Have You Been a Victim of Investment Fraud?

You trusted your financial advisor with your money, but now you're left wondering what went wrong. If you or a loved one suffered losses because of investment misconduct, Meyer Wilson can step in and fight to recover your losses. The team of investment fraud lawyers at the firm has been helping people like you since 1999 by winning judgments, settlements and verdicts worth hundreds of millions of dollars against brokerage firms, financial advisors and banks.

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