Ponzi Schemes Dedicated to Delivering Results

New York Based Ponzi Schemes Attorneys

Proudly Representing Parties Harmed by Securities Fraud Nationwide

Many investors do not fully investigate the specific details regarding investments and often rely on the advice of financial services professionals when considering how to invest their money. Unfortunately, in some cases, rather than making sound investments, a broker or financial advisor will use an investor’s money to further a fraudulent Ponzi scheme.

Ponzi schemes can result in catastrophic financial losses, and investors harmed by Ponzi schemes may have legal recourse. If you were a victim of a Ponzi scheme, you must reach out to a skilled attorney with experience pursuing claims against perpetrators of Ponzi schemes. The legal team at Weltz Law has the skills and experience you need to seek compensation for your losses. Our firm is based in New York and represents investors harmed by Ponzi schemes throughout the country.

Call (877) 905-7671 today to set up a free case consultation to discuss the details of your situation.

What Is a Ponzi Scheme?

While many people have heard of Ponzi schemes, few people know how to recognize and avoid such schemes. A Ponzi scheme is a fraudulent plan in which a broker or financial advisor takes money from investors but keeps the money rather than investing it. Brokers and financial advisors running Ponzi schemes can continue the scheme by paying the initial investors money that they believe is a return, but the money is actually principal from new investors.

For example, if an investor gives a broker $100,000 to invest in a stock, and the investor receives a dividend of $25,000 each month, the investor would likely believe that the stock is doing well. In Ponzi schemes, however, the money given to the broker is never invested, and the monthly “dividend” is not a profit but is money taken from another individual whom the broker convinced to invest.

New investors are often persuaded to invest in Ponzi schemes when they hear about the high rates of return from current investors. Although investors in Ponzi schemes may receive purported returns initially, Ponzi schemes are not sustainable, and eventually, they collapse, leaving investors with no money and no investments.

What Are the Signs of a Ponzi Scheme?

There are certain elements that are common in most Ponzi schemes in New York or elsewhere. First, the investments offered in Ponzi schemes are typically very low risk but offer a high rate of return, whereas legitimate investments either yield high returns but involve substantial risk of losses, or are low risk but provide modest returns. Additionally, Ponzi schemes often pay high and consistent returns. Given market fluctuations, it is highly unusual for an investment to pay the same return each month. Thus, consistent returns are likely a sign that an investment is not valid.

Brokers and investment advisors involved in Ponzi schemes often employ complex investment strategies in an attempt to confuse investors and prevent any questions regarding the investment. However, any broker who sells securities must be registered with the Federal Industry Regulatory Authority (FINRA), and any securities that are sold must be registered with the Securities Exchange Commission (SEC). Thus, if a broker is not registered or attempts to sell an unregistered stock, it can be an indication that the broker is engaged in a fraudulent scheme.

Speak to Our Dedicated & Reputable Ponzi Schemes Lawyers Today

If you suffered financial losses due to a Ponzi scheme, you should contact a proficient securities litigation attorney as soon as possible to discuss your options for seeking damages. At Weltz Law, we have more than 50 years of combined experience, and we are prepared to use our extensive resources to help you recoup your losses. Our legal professionals are sensitive to the financial devastation that Ponzi schemes cause and will assertively pursue any damages that you may be entitled to recover.

Call (877) 905-7671 today or use our online contact form to schedule a free case consultation to discuss your case.

WHAT SETS US APART

Experienced & Effective
  • 30+ Years of Collective Experience

    Our attorneys have over 30 years of collective experience representing clients in all aspects of securities and commercial litigation.

  • Contingency Fees for Our Securities Law Clients

    We will not receive a penny in attorney's fees unless a positive recovery is obtained in your case. Contact us to see if you're eligible.

  • Free Consultations

    We will assess the merits of your claims and help you decide on the next step.

  • Litigated Claims in Excess of $50 Million for Our Clients

    Our firm has successfully recovered over $50 million for our clients.

Testimonials

Word From Former Clients
    Calmly walked me through the process.

    “Due to his hard work, the hearing lasted less than 30 minutes with the judge dismissing the complaint.”

    - L.K.
    Successfully represented me in a number of matters

    “Attentive to every aspect of my matters, always available to speak with me, gave me great advice and fought hard for me every step of the way.”

    - I.S.
    Truly terrific in every way.

    “He cared, he was responsive, and he guided me through a difficult time with compassion and expertise.”

    - F.S.
    I could not recommend him highly enough!

    “He was there to talk me through any questions and concerns I had until we decided on the best option for me.”

    - Securities Industry
    Smart, cost-efficient, and gets results.

    “My go-to lawyer for arbitration and regulatory matters for years.”

    - B.D.
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