CEO, two others arrested for securities fraud in New York


Despite greater attention paid to the possibility of securities fraud in investment opportunities in New York, Puerto Rico and across the U.S., it is still worryingly common for Ponzi schemes to be discovered. People who are taken in by the promise of big returns on their investment and little risk should be wary. Even savvy individuals are hoodwinked by experienced scammers. If there is a suspicion that such a scheme is taking place and money is at risk or has already been lost, it is important to report it to the authorities. Even more important is that the individual be protected with experienced legal assistance to try and get some or all their investment back.

Arrests made in massive Ponzi scheme

Three men were arrested for overseeing a huge Ponzi scheme worth what was said to be hundreds of millions of dollars. The men ages 54, 52 and 51 are facing myriad charges for their roles. The charges include conspiracy, wire fraud and securities fraud. According to prosecutors, the company was founded eight years ago and claimed to invest in private equity. However, clients were allegedly under the impression that the value of their investments were increasing when they were not. To continue the ruse, new investments were used to indicate the rise in value of existing investors’ holdings.

Those who invested received promises that they would consistently yield profits of 8%. The men relied on new investments to show those returns. The company accrued nearly $2 billion from investors, but there was no profit. The men were said to have used the money on expensive purchases for themselves. Prosecutors are trying to recover $700 million for those who were taken in by the scam.

Those victimized in Ponzi schemes might get their money back

People who think they might be investing in a Ponzi scheme or have already been caught up in one might be under the impression that their money is gone and they have no chance of recovery. That is not the case. There are strategies to recover the money that was lost, but it requires professional assistance.

Understanding how to untangle the complicated web of investments and shields scammers use can take time. Consulting with a firm that understands how Ponzi schemes work and knows what steps to take to pursue clients’ money is imperative. Even if there is only a fleeting suspicion that there is an ongoing Ponzi scheme, a firm with a history of helping those victimized by securities fraud might be able to help.