A Ponzi scheme, also known as a pyramid scheme, is a deceptive investment operation in which investors are promised high returns in a short duration of time. Instead of investing recruits' funds, the originator of the scheme pays "dividends" to initial investors using the principle amounts "invested" by subsequent investors.
The operation typically collapses when the originator flees with all of the proceeds or when there is a lack of a sufficient amount of new investors.
Speak with a Phoenix white collar crime attorney if you have been charged with a ponzi scheme. Contact us today!
Charges and Penalties for Running a Ponzi Scheme
If you are accused of operating a Ponzi scheme, you may face charges filed by the state of Arizona, the federal government, or even both. Investigations are conducted by Arizona and federal agencies, such as the Federal Bureau of Investigation (FBI), the U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Justice.
The following financial fraud charges are often associated with Ponzi schemes:
- Commodities fraud
- Lottery fraud
- Mail fraud
- Money laundering
- Real estate fraud
- Securities fraud
- Tax evasion
- Wire fraud
The penalties associated with running a Ponzi scheme are harsh. The federal government has issued extensive prison sentences in financial fraud scams. Former top executive from Fortune 500 companies have been given severe penalties for such white collar crimes.
Violators are subject to the following penalties:
- 20 to 30 years in prison
- $500,000 to $1 million in fines
- Treble damage
- Other penalties
Let an Experienced Criminal Defense Attorney Fight for You
When you come to Jason D. Lamm Attorney at Law, we are dedicated to providing you with an aggressive and personalized defense. The issues involved in Ponzi scheme accusations present a multitude of complexities since it involves a substantial amount of money and multiple defendants.
As a former prosecutor on major felony crimes, our Phoenix criminal defense attorney possesses the comprehensive knowledge of both sides of the courtroom. Whether you are in Phoenix, Tempe, Scottsdale, Mesa, Glendale, or Chandler, you can depend on our devoted legal team to be on your side during your difficult time.
Call our offices today at (602) 663-9100.
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