I May be Involved in a Ponzi Scheme

Some people who believed they were involved in a legitimate business enterprise find themselves under investigation for their participation in conducting a Ponzi scheme.  A Ponzi scheme is when a person entices people to invest their money in an enterprise with the promise of a high and fast return.  The catch is that the investment is for a bogus enterprise.  At Gaydos Duffer, we can assist folks who are under investigation for, or have been charged with, involvement in a Ponzi scheme.

Overview of a Ponzi Scheme

There are many types of Ponzi schemes in all industries.  How it works is that money invested by new investors is used to pay those who have already invested.  Early investors believe they are receiving a return on their investment.

Some pyramid sales plans, where each paying participant recruits more paying participants, turn out to be Ponzi schemes since money from new participants is used to pay early participants.  Eventually, with no new investors, the scheme fails.

What to do if You Were a Participant Who Was Recruiting Others

When the scheme collapses, all those who were involved in any way with the investment scheme come under investigation.  Often, the people running the scheme are the only ones that knew the plan was a “scheme.”

You likely believed that you were helping people make money while you were enjoying the benefits that came with recruiting others to be part of the plan.  You may have had no idea you were involved in fraudulent activity.  You probably thought you were involved in a legitimate business operation.

If you discover the “higher-ups” in your sales business are under investigation for conducting a Ponzi scheme, you should know that you are likely also under investigation.  It is possible that an investigator from the FBI or other state or federal governmental agency will show up at your home some evening after working hours and ask politely to speak to you.

You should simply tell the investigators that you are willing to talk to them, but not at your home after a busy workday, or not in the parking lot if that is where you are when they approach you.

Ask them to give you a number where you can contact them to set up an appointment.  Then, contact us at Gaydos Duffer.  We will arrange a time for a meeting at a time convenient for you and when we can be present with you during the interview.