A Ponzi scheme is a classic example of robbing Peter to pay Paul. Not everyone who invests in a Ponzi scheme ends up with large losses. The earlier investors receive the consistent profits that the fraudster promises. In effect, they are taking money from the later investors to pay these returns. The promoter needs to consistently bring in new investors to keep paying returns to the earlier investors.Once they can no longer get new money, the entire scheme will unravel. Then, investors will find that they cannot withdraw their money, even when they make a request to do so.Not all hope is lost when you have been defrauded. You can hire an experienced Ponzi scheme lawyer who can help you pursue all possible leads to get back as much money as you can. The attorneys at Rikard & Protopapas can help you track down your money and work to recover it.

Here are some red flags that should tell you that all is not what it seems with your investment:

The promoter claims to have a foolproof investment strategy.

The investment has consistently large returns, with little volatility or actual risk.

The advisor will not give you detailed information when you ask for it, and always seems to be giving you excuses why they cannot furnish data.

There is little transparency with the fund.

The advisor is not registered with the SEC or a self-regulatory organization.

There is a delay when you are trying to withdraw money.

There is no independent verification of investment returns from a reputable accountant.

You do not receive legal documentation about the investment or monthly statements regarding your account.

Remember, if something seems too good to be true, it generally is. If the promoter has the golden answer to make consistently high returns, they would already have plenty of money to do it themselves, and they would not be pressuring you to invest or recruit more investors. There is no such thing as an investment that makes money every time and all the time.

In many cases, the money that you get back may not come from the promoter themselves. By the time that they are caught, they may have already spent or lost your money.

As you can see, your attorney may be able to take action against others. There may be companies that helped the promoter, even if they did not actively know what was going on. Brokers have an obligation to know who they are doing business with and report any suspicious activity. Some of the early investors could even have been in on the scheme, and they can be sued too.Unfortunately, you cannot even trust everyone who claims that they will help you recover the money that you have lost. Not only are there Ponzi schemers, but there are also people who try to prey on victims who are desperate to get some of their money back. You need to make sure that you trust the person you depend on to fight on your behalf. Your attorney should have a track record of successfully fighting on behalf of victims.

You need a skilled attorney who will never give up, leaving no stone unturned in trying to get as much of your money back as possible. History has shown that the most determined people have gotten some money back when there was even some possibility.

Here are some sources that we may look to, so we can get your money back:

Relatives of promoters who have received recent returns

Insiders

Third parties who aided and abetted the scheme, such as accountants, attorneys, and clearing firms

Those who made money from the Ponzi scheme (other than the promoter)

Liquidation of the assets held by the Ponzi scheme

Insurance agents of financial advisors who recommended the Ponzi scheme

You may get your money back through a combination of these sources. Oftentimes, the fight can take years for you to even get some of what you lost returned.While you may never be paid back in full, your investment may not be a full loss. In some cases, your money could be returned little by little, as your lawyer recovers it over time. Ponzi scheme financial recoveries happen over years, as opposed to months, and you need an attorney who will stay the course and pursue every lead possible.

It will not be hard to get a judgment from the person who stole from you. It will be more difficult to get some of your money back.

Here are some steps that you can take to increase your chances of recovering some of what you have lost:

Raise red flags as soon as you suspect that there is something wrong — the more time that the schemer has, the more they will be able to dispose of your money and make it disappear.

Hire an experienced attorney who knows how to “follow the money” and be creative and aggressive in taking action on your behalf.

Retain all the necessary documentation needed to show the extent of your losses.

Report the scheme to law enforcement for them to take action against the fraudster.

Rikard & Protopapas has represented thousands of clients across the United States in investment fraud cases against financial advisors and brokerages. Advisors and institutions must abide by strict laws when handling investments for clients and they must be held accountable if they fail to do so.If you have concerns about an investment you made or believe you are a victim of a Ponzi scheme, please call our firm immediately. There is no cost to explain your situation to our legal professionals and see how we can help.