Lawyers for Pyramid Schemes

Securities fraud

If think you may have been the victim of a pyramid scheme, there are lawyers who can help resolve your problem. If your specific case falls outside of the criminal courts, civil litigation attorneys may be the ones who are able to provide assistance.

The most famous pyramid scheme was run by Bernie Madoff. He was an investment manger on Wall Street who was arrested in December 2008. So many people bought into his scheme, at one point he served as the chairman of the NASDAQ stock exchange. He operated the largest Ponzi scheme, or pyramid scheme, ever orchestrated. The victims of his fraud lost a total of nearly $20 billion. Madoff is currently serving a prison sentence for 150 years because of his crimes. People are effected by fraud on large and small levels.

What are pyramid schemes? They are a form of fraud to con money from hard working people. Usually a recruiter will sit at the top of a pyramid. This one person recruits a second person who then has to invest an amount of money. The first recruiter keeps this money. The new recruit then has to find more people to invest in the scheme. And those new recruits then in turn invest and get others to invest. If the first recruit finds 1o more people, they will make a profit from their small investment.

Eventually, pyramid schemes run out of investors. And the people at the bottom of the pyramid lose their money. While the person at the top takes and effectively steals their investments or buyins from others. Do not forget that pyramid schemes are illegal. And once investors stop buying into the program, the pyramid collapses and no more people can become a victim.

Who do you contact for help? You can contact law enforcement and a personal attorney. There are options for prosecution on the state and national level. A criminal attorney can help build your specific case. Depending on your location, the laws for the area are different. For a civil lawsuit, litigation attorneys are often able to help.

Be sure to also contact the local law enforcement about any form of fraud. Hopefully they will be able to track down some of the funds to return it to their rightful owners. Also, be sure to contact the national level of government agencies who look into pyramid schemes. If a scheme took place in more than one state, the Federal Trade Commission and the Justice Department may be able to investigate and prosecute. Know that securities and commodities fraud cases are not uncommon. In 2014 alone there were 1,639 cases fraud cases pending on that exact topic.

So, remember to consult an attorney if you?re the victim of fraud. They will know the right course of action and be able to advise you. Litigation attorneys can file a civil suit in court, or often settle outside of a trial. A business attorney may be able to help you recover any money lost. Depending on the type of fraud, consider seeking out a more specialized lawyer. Like a stockbroker fraud lawyer or a securities fraud lawyer who will be more familiar with your specific legal issue.

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