Ponzi schemes have unfortunately become all too familiar in today’s marketplace. They can be promoted using a wide array of products, such as oil and gas partnerships, start-up companies, and leasing programs to name a few examples. Because the schemes purport to offer high returns within reasonable risk levels, and often rely on propped up credentials of a financial adviser or business person, these investments attract many investors. Oftentimes these schemes are perpetrated on specific groups of people sharing common life interests, such as a church or charitable group. (Sales practice abuse that targets specific organizations or groups is referred to as Affinity Fraud).

The most notorious Ponzi scheme in recent years was perpetrated by Bernie Madoff, who lost about $17 billion of investor principal. Other recent Ponzi scammers include Stanford Investment Bank, Petters Group Worldwide, and Rothstein Rosenfeldt Adler, which collectively lost over $11 billion in principal of investors’ money.

Back to Products