Ponzi Schemes
The recent changes in the financial markets have led to startling allegations and accusations from investors, directed towards money managers and investment bankers. As these accusations are picked up and repeated through the media, the words Ponzi scheme and pyramid scheme will often be frivolously used to decry the accused financier. Accusations of running a Ponzi scheme are enough to irrevocably damage an investment firm by themselves. However, if the accusations turn in to criminal charges, the freedom of all who work for the investment firm can be at stake. Recent criminal charges related to alleged Ponzi schemes have led to lengthy criminal sentences as well as civil penalties of over $100 million dollars. If you are accused of operating a Ponzi schemes the time to act is now; contact the Ponzi scheme attorneys at The Blanch Law Firm and begin the fight to restore your freedom.
What is a Ponzi Scheme
Ponzi schemes are named after Charles Ponzi who gained public notoriety for running such a scheme at the beginning of the 20th century. Though the scheme is named after him, evidence suggests that the scheme was created long before he made it famous. Essentially, a Ponzi scheme is a type of pyramid investment scheme where large returns are promised to investors in buy into the scheme. The reality is that little or no investments are actually made. All the money that is returned to the investors is money that came from clients who bought into the scheme after them.
Often, people who are running Ponzi schemes will employ feeders to ensure a continual stream of investor into the scheme. These feeders can also be charged for participating and profiting off of a Ponzi scheme and can face both criminal and civil penalties if they are convicted. Charges and lawsuits can follow even if they were ignorant that they were participating in a fraud. If you are a feeder who knowingly or unknowingly participated in a Ponzi scheme, contact the Ponzi scheme lawyers at The Blanch Law Firm, a New Jersey white collar defense firm.
It is impossible for a pyramid, or Ponzi scheme to be run successfully and un-noticed for an interminable period of time. A Ponzi scheme will end in one of these ways:
- The scheme will be found out and arrests will be made.
- The scheme will collapse under its own weight.
- The person who organized the scheme will disappear with the money.
None of these potential end scenarios should be seem as a victory for those who are accused of Ponzi schemes. Even if you are able to escape and are hiding from authorities with some or all of the seized funds in another country, that life is not a stable situation: extradition warrants can be ordered and you may be extradited from the country that you are hiding out in and forced to face a harsh prosecution.
Criminal Charges for Ponzi Schemes
While there are no penal laws in the state or federal law books that prevent Ponzi schemes by name, the criminal elements of a Ponzi scheme are often proved using various theories for other crimes. The following is an incomplete list of criminal charges that could potentially be found on an indictment for alleged Ponzi scheme activities:
- Theft
- Mail Fraud
- Wire Fraud
- Money Laundering
- Embezzlement
- Securities Fraud
- Violations of the RICO Act
The penalties for these crimes can be very severe and can also include serious civil penalties. Recent trends with sentencing in white collar crimes have result in judges deciding to run terms for charges consecutively instead of concurrently. What this means for people who are being accused of a managing a Ponzi scheme is that they can very easily be sentenced to of over 100 years jail for participating in a Ponzi scheme. To put the severity of a conviction for white collar crimes in perspective, criminal sentences for white collar crimes have historically been as high as over 800 years in jail.
Asset Forfeiture and Ponzi Schemes
Aside from the threat of serious criminal penalties, criminal and civil asset forfeiture are also possibilities facing those accused of running a Ponzi scheme. Assets such as bank accounts, real estate, vehicles, jewelry, and many other types of assets can be seized, frozen or forfeited due to their being the alleged proceeds of a criminal act. This can be a very troubling time for the clients of the Ponzi scheme lawyers at The Blanch Law Firm because they do not know how they will be able to provide for their family while they are answering their criminal charges.
There will be times when prosecutors for The U.S. Department of Justice seize assets frivolously without taking the time to discern whether or not they are in fact the proceeds of criminal actions. A skilled white collar lawyer can petition the court to release a portion of, or all of these assets so that you can provide for your family while you answer criminal charges. If your assets are frozen because you were allegedly participating in a Ponzi scheme, contact the Ponzi scheme lawyers at The Blanch Law Firm today to begin restoring your rights.
The Blanch Law Firm Can Help
White collar criminal sentences where the time for each charge is run consecutively can be equivalent to a life sentence. While some people may interpret this as a severe sentence for someone who did nothing violent, judges have the authority to make this decision if they feel that it is warranted. At The Blanch Law Firm, we believe that criminal defendants get convicted, while human beings often get leniency. We challenge the evidence and argue with the prosecutors for the government in order to remind the court that you are a human deserving compassion. If you are accused to taking part in, or masterminding an alleged Ponzi scheme, contact the experienced NJ white collar attorneys at The Blanch Law Firm today and begin what could be the most important battle of your life.