Investment Fraud

What is Ponzi Fraud?

Ponzi fraud schemes are deceptively simple: hugely attractive and often guaranteed returns are offered to investors. Those returns can only be paid if the scheme continues to attract new capital from fresh investors. The money that is taken from new investors does not get invested; instead, it is used to pay existing investors.

However, those investing at the outset of a Ponzi fraud often find their returns are provided as promised in a bid to lure others into the scheme. In time, the number of new investors will diminish or completely dry up. As a result, the Ponzi fraud scheme will collapse, and the fraudster walks away with the money.

Ponzi Fraud Warning Signs

• A promise of high returns
• A promise of little or no risk
• Highly-complicated strategies or jargon
• High-pressure selling strategies
• Problems with paperwork
• Problems with receiving payment
• Highly-secretive
• ‘Returns’ that are overly consistent
• The company is not registered on the Financial Conduct Authority Register

Legal Advice for Complex Sales and Investment Fraud

It is important if you are investigated for complex fraud, such as an alleged Ponzi fraud scheme, that you have specialist legal advice with a defence team who understand the practises and background associated with the industry involved. Making the right choice on your legal team is important from an early stage. While it is not impossible to change your legal representation down the line, it does prove challenging.

Barristers at St Pauls are highly experienced with cases regarding sales and investment fraud, so please get in touch for assistance.