Ponzi Schemes


Ponzi schemes are a type of fraud involving the payment of dividends to investors from the money put in by subsequent investors. The money is usually not invested at all, but is often used by the person who started the scheme for personal expenditures. Perhaps the best known Ponzi scheme in recent history was run by Bernie Madoff.

The lure of Ponzi schemes is typically the promise of unusually high or regular returns. By the time most have been discovered, the investors’ money has already been spent, and getting it back can be extremely difficult. If you have lost money in a Ponzi scheme or fear that you may have been drawn into one, you should seek the advice of a Ponzi scheme lawyer immediately.

The purpose of this guide is to give you a general overview of some of the more famous Ponzi schemes, third parties who may be subject to liability for promoting these schemes, receiverships, collection issues, and some tips on where we might look to help victims recover their investment.

How to Report a Ponzi Scheme

  • Sonn Law Staff
  • Jul 17, 2018
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Steps to Take When Reporting a Ponzi Scheme As explained by the Securities and Exchange Commission (SEC), a Ponzi scheme is a form of investment[...]

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What is a Ponzi Scheme?

  • Jeffrey Sonn
  • Jan 10, 2017
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All too often, investors are duped into making an investment that promises extraordinary returns, later discovered to be a “Ponzi Scheme”.1 The term Ponzi Scheme[...]

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