Denton Criminal Lawyer

Ponzi Schemes

Some white-collar crimes, such as Ponzi schemes, can reach massive proportions. Ponzi schemes are types of fraud that can involve millions of dollars and many thousands of people. These investment scams were first identified in 1920 after Charles Ponzi operated the first large-scale financial scam. Recently, people like Bernie Madoff have been charged with operating enormous Ponzi-like schemes.

Because most people are now aware of Ponzi schemes, they can be quick to accuse people of these crimes. If you have been accused of a Ponzi scheme or other white-collar crime, it is important that you talk to an experienced criminal defense attorney who can help you fight for your rights and freedoms. To discuss the facts of your case, contact a knowledgeable Denton criminal defense lawyer from Alexander & Associates today at 972-420-6560.

How Ponzi Schemes Work

In a typical Ponzi scheme, a fraudster will create an enticing “investment opportunity” in which people can place their money. These schemes often promise high returns at little-to-no risk. However, the fraudster instead keeps the money, paying it out only when people ask for returns. When the fraudster receives more money from new investors, he or she then pays out this money to older customers, and so on.

This circulation of money continues until authorities identify it as a Ponzi scheme or it collapses. A Ponzi scheme is destined to collapse because the money only increases due to new investors, not actual investment returns.

Contact Us

Running a Ponzi scheme is a serious charge, and it can land you in jail for many years with steep fines to pay. If you have been charged with a Ponzi scheme, you should enlist the help of an experienced attorney to help you defend your rights with the tenacity that you deserve. Contact an experienced Denton criminal defense lawyer from Alexander & Associates at 972-420-6560 today to learn more about how we can help you.