Investors can suffer significant financial losses if they become victims of Ponzi and pyramid schemes. It is often hard for individuals to realize they are a part of a Ponzi scheme until it is too late.
Ponzi schemes have gained national attention in the past few decades through extensive media coverage and movies. Fraudsters like Bernie Madoff (who is currently serving 150 years in prison for his epic scam) have brought Ponzi and other pyramid schemes to public awareness. In these scams, later-paying participants’ funds are used as returns to pay earlier participants with few or no actual investments being made or products being sold.
If you have reason to believe that you have been victimized by a Ponzi or pyramid scheme, contact Levin Law immediately. At Levin Law, a Detroit Ponzi and pyramid scheme attorney will investigate your case and determine if legal action would be helpful in recovering your investment losses. As experienced financial fraud lawyers with a strong track record of successfully obtaining significant monetary recoveries for clients, we are dedicated to helping defrauded clients recover the compensation they deserve.
As defined by the Securities and Exchange Commission (SEC), a Ponzi scheme is “an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors.” These schemes can only continue by continually bringing in new funds to create the illusion of a profitable investment group. No actual investments may ever occur as the creator of the scheme satisfies his own personal interests by skimming funds or investing them elsewhere.
Pyramid schemes work similarly through constant recruitment of new members whose fees are then used to pay those earlier members at the top of the pyramid. Emphasis is on recruiting members as opposed to selling a legitimate product or service.
Pyramid schemes differ from legitimate multi-marketing programs, which may engage in actual sales of products to consumers. Pyramid schemes often promise high returns, passive income, and rarely generate real revenue from sales. They may have complicated commission arrangements. Eventually, they collapse, as do Ponzi schemes when new recruits diminish.
Victims of Ponzi schemes often lose all of their life savings or at least significant sums of money. To help Ponzi and pyramid scheme victims, you will need lawyers with extensive experience prosecuting financial fraud cases and recovering money for Ponzi and pyramid scheme victims in Detroit. At Levin Law, we have demonstrated excellence in this field and are committed to helping you recover as much as possible through aggressive and skilled legal representation.