The Blanch Law Firm has decades of experience defending individuals and institutions that are accused of, charged with and/or being investigated for running Ponzi schemes. Ponzi schemes are a type of financial fraud which can be investigated by various agencies of the federal government, including the SEC, FBI and U.S. Department of Justice, as well as state government agencies. Sometimes, even in the best scenario, the penalties for running a Ponzi scheme include heavy jail time and massive fines.
Individuals and institutions charged with such violations could face an array of charges from both the state and federal government and possibly have to serve jail time and pay fines for both. Charges for Ponzi schemes are often also coupled with other charges such as Tax Evasion, Mail Fraud, Wire Fraud, Securities Fraud or other Financial Crimes.
A Ponzi scheme (named after its inventor Charles Ponzi) is a variation of the pyramid or multi-level marketing scam where a director or manager of finances solicits investors with the promise of a given return rate on investments. This can be advertised as anything: securities, a hedge fund, mutual funds, even postage stamps. Instead of paying investors with profits from actual investments, the director pays them with the principal given to him from new investors.
Ponzi schemes can include, but are not limited to, the following forms of financial fraud:
Real Estate Fraud
As has been widely publicized, hedge fund managers, financiers and executives of other types of financial institutions are usually those charged with operating a Ponzi type scheme. Of recent note: Bernie Madoff, former head of Nasdaq and thought to be head of one of the best hedge funds in the nation, is being investigated for allegedly running a Ponzi scheme that may cost investors up to $50 billion; Nicholas Cosmo was charged with running a $350 - $400 million Ponzi scheme; and Marc Dreier, a top New York defense attorney, was arrested and charged with running a $380 million Ponzi scheme. All of these individuals were respected professionals who found themselves facing a legal system motivated to convict them and a public that had already condemned them.
Part of the reason the SEC, FBI and DOJ will severely punish those accused of running Ponzi schemes is that the victims of these crimes often include elderly individuals and charitable organizations. While this isn't the case for all victims, some are investors who were quite aware of the possible fraud happening, the media often portrays the victims as unassuming. Qualified and experienced Ponzi scheme defense attorneys understand the underlying issues involved in the crime. Defense attorneys must have sophisticated techniques to combat the best tactics the prosecution will surely bring in such a case.
The federal government has handed down heavy jail time in financial fraud scams such as Ponzi schemes, and former top executives of Fortune 500 companies have spent years in prison cells because of such offenses. The Blanch Law Firm is able to counsel, advise and defend any financial professional who is being investigated for their involvement in a Ponzi scheme. Our knowledgeable defense attorneys will walk you through the entire process and assist you in handling bail, court proceedings, government investigations and any other situations which may arise as a result of being charged with running a Ponzi scheme.
To speak with an investment fraud attorney about your criminal defense concerns, Contact The Blanch Law Firm by calling 212-736-3900 to arrange an initial consultation.