PONZI SCHEME LAWYERS We often represent investors who have lost money in Ponzi schemes. Investor rights lawyer Alan Rosca, one of the firm’s partners, has represented thousands of victims of Ponzi schemes. Ponzi schemes are fraudulent investment programs in which unscrupulous promoters pay supposed returns to existing investors with money raised from new investors, in effect “robbing Peter to pay Paul.” Ponzi schemes are by definition unsustainable and fraudulent. They are unsustainable because they depend on the promoters’ ability to continuously recruit new investors to be able to pay returns to existing investors. As the size of the scheme grows, the distribution payments to existing investors grow ever larger, and at some point the promoters become unable to recruit sufficient investors to cover those distribution payments. At that point, the Ponzi scheme runs out of steam and collapses. Ponzi schemes are inherently fraudulent because new investors are...
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