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Florida Investment Fraud Attorney On Ponzi and Pyramid Schemes
Some people in Florida and other states try to scam others out of their money instead of making an honest income. Two tricks these con artists use are called Ponzi and pyramid schemes. Knowing how these methods of deception work can help you protect your money, but a Florida investment fraud attorney could help if you have already fallen victim to one of these schemes. Ponzi Scheme In a Ponzi scheme, someone lures others in by telling them about a supposed investment opportunity with little risk that yields a high reward. This sounds too good to be true because it is as these schemes are funded by paying existing investors with the money from new investors. This scam looks like it works because the earlier investors get paid, but the revenue dries up if there are no new investors or too many investors want to collect their money at the same time. Pyramid Scheme One can supposedly get rich by making one payment for a product then recruiting others with a pyramid scheme. This can look legitimate because a real product might be involved, but money is made by getting others to become distributors. This falls apart because the number of people needed to fund others grows with each new person recruited. With both schemes, money from new participants is used to fund others and support the appearance of a successful venture. With legitimate ventures, investments are typically registered while vendors should have audited financial statements. If you think you are a victim of investment fraud, contact us today so that we can start helping you.