Even knowledgeable investors can fall victim to Ponzi schemes, so knowing how to recognize them and what to do if you are involved in one of these operations is essential. Having an experienced securities fraud lawyer on your side is your best resource if you suffered financial losses due to any type of investment fraud.

Our Ponzi scheme attorneys at Oakes & Fosher Law know how to identify Ponzi schemes and hold those responsible legally accountable for your financial losses and other damages. We solely represent victims of Ponzi schemes and other types of securities fraud.

Contact us today for a free, confidential consultation with our team.


Why Hire a Ponzi Scheme Attorney From Oakes & Fosher Law to Handle Your Case?

Ponzi Scheme Attorneys at Oakes & Fosher LawAt Oakes & Fosher Law, we only handle securities and investment fraud cases. Our entire practice focuses on how we can help investors who lost significant sums of money due to broker negligence, mishandling of investments, and fraud.

We have the experience and resources necessary to navigate mediation or arbitration for our clients, seeking compensation for their losses and accountability for those who acted negligently or fraudulently.

When already facing financial distress due to securities fraud, the cost of hiring an attorney to manage securities arbitration is always a concern. However, our Ponzi scheme attorneys make it easy. We work based on contingency.

Our clients pay no upfront fees. Instead, we receive a portion of the monetary damages we secure in the case. If we do not win, our clients do not pay attorney’s fees.

Learn more during a free consultation with our team. Contact us today.

Our Investment Fraud Lawyers Explain How Ponzi Schemes Work

A Ponzi scheme looks appealing because it promises high rates of return on investments. However, the scam uses money from newer investors to pay off earlier ones.

Eventually, the scheme collapses because:

  • Too many investors ask to cash out, and funds are unavailable
  • There are not enough new investors to supplant the earlier investors’ returns

The name of this investment fraud technique comes from scam investments in the 1920s, but they still occur today.

The most recent famous Ponzi scheme occurred under former stockbroker Bernie Madoff’s watch. The operation lasted three decades and cost investors billions of dollars. It collapsed during the Great Recession of 2008.

How to Recognize a Ponzi Scheme

Ponzi schemes are often well-designed and carefully promoted so they do not raise red flags. This can sometimes fool even experienced investors. Some ways to recognize Ponzi schemes include:

  • You are promised a high rate of return. Investors are promised a high return rate, but not unbelievably high. Often, there are also tales of previous investors who received a consistent return on their investment or other similar benefits.
  • The operators claim to have insider information about the investment. The Ponzi scheme operator may explain why the investment gets high returns, including citing statistics and resources the public cannot access. These claims help the scheme appear legitimate.
  • There are short-term payoffs for early investors. The operators often build legitimacy with earlier investors by paying them off quickly, encouraging them to see this as a worthy investment. In truth, this is just the money invested by newer participants. This is at the heart of how the Ponzi scheme works. The earlier investors offer more money, continuing the scam.

FAQs for Our Ponzi Scheme Attorneys

Who Do Ponzi Schemes Typically Target?

Anyone can become a victim of a Ponzi scheme. Ponzi scheme victims range in age, socioeconomic status, and amount of money invested into the venture. Those who defraud victims of their money are often quite cunning, and the victims themselves entrust them with their money without knowing all the facts.

What’s the Difference Between a Ponzi Scheme and a Pyramid Scheme?

While many people discuss Ponzi and pyramid schemes interchangeably, they differ. In pyramid schemes, you typically need to recruit others to join, and once you do, the perpetrator promises you an increase in your rate of return. Ponzi schemes only require you to invest your money.

I Received Some Payments From a Ponzi Scheme. What Happens Now?

Consult an experienced broker fraud attorney to determine the best course of action. An Oakes & Fosher Law Ponzi scheme attorney might ask you about the amount you invested and when, how much you received from your investment, and whether the return was more than the amount you put into the scheme.

With this information, we can assess your options and begin to define a strategy for your case.

How Do I Get My Money Back After a Ponzi Scheme?

Ponzi scheme victims could have options for recovering the money they invested plus damages. You may pursue a case against a broker or others involved in the operation. The best way to understand your options is to work with an experienced Ponzi scheme attorney. Contact our investment fraud lawyers to get started today.

How Will a Ponzi Scheme Lawyer Help With My Case?

Consulting a Ponzi Scheme LawyerAt Oakes & Fosher Law, we only handle securities fraud and negligence cases. We know how to navigate the process, from filing a claim to developing a compelling case to representing our clients during their Financial Industry Regulatory Authority (FINRA) arbitration hearing.

If you believe operators of a Ponzi scheme took advantage of you or a loved one, contact our Oakes & Fosher Law attorneys today. We can determine what happened and what you need to do next.

Seek representation as soon as possible. Our Ponzi scheme lawyers are experienced with securities fraud and can help.

Discuss Your Ponzi Scheme Losses With Our Team for Free

Bruce Oakes, Lawyer for Ponzi Scheme

Bruce Oakes, Ponzi Scheme Attorney

Oakes & Fosher Law provides free case reviews for those who suffered losses from investment fraud. Our securities fraud lawyer can review your case facts and explain your next steps. Let us help you get justice. Contact us online or via telephone for your free consultation.

Call (314) 428-7600 now to get started.


Oakes & Fosher, LLC

1401 South Brentwood Blvd.
Suite 250
St. Louis, MO 63144