Why Hire a Ponzi Scheme Attorney From Oakes & Fosher Law to Handle Your Case?
At 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.
Since 2007, Oakes and Fosher has won more cases on behalf of individual investors tried before full FINRA panels than any other attorney in the country.
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
At 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.