No matter your profession, you have worked hard for every dollar that you earned. So, the discovery that someone has misled you and taken your money for their personal gain is heart wrenching. This scenario is all too common these days and is often categorized as a Ponzi scheme. If you've fallen victim to this type of scam, know that the practice is illegal, and a securities attorney might be able to help you.
Recognizing a Scheme
It's important that you be able to recognize when you are being taken advantage of, but unfortunately, this process isn't always easy. However, many scams share similar behaviors. By law, a Ponzi scheme involves a process by which payments to previous investors are made from funds of new investors but are passed off to the initial investors as a return.
The problem is that these investment payments are often plentiful initially, but once the organization is no longer able to onboard new investors, they are also unable to pay their original investors, which is when the whole scheme falls apart.
Take Action Now
If you suspect this type of issue is taking place with your funds — don't invest any more money. The more money that you pay into the scheme, the harder it will be to recover your hard-earned money. It's also not a wise idea to immediately alert the organization that you are aware of their unscrupulous actions.
Many of these organizations will do everything they can not to return your money, and if you give them the advantage by giving them a heads-up that you know what's going on, the more time they have to move around any funds. Stay quiet and address all your concerns with an attorney.
The most important thing for you to remember is that it is possible to recover the money that you have invested in a Ponzi scheme. Once you bring your concerns to an attorney, he or she will go to work to locate the assets of the organization.
Often, this process is completed through an arbitration or civil court proceedings. Provided the attorney can locate the assets, you will have your money returned to you.
If you believe you are the victim of a Ponzi scheme, don't wait around. The faster you get the law on your side, the more likely you are to get your assets back. It's a good idea to contact an attorney as soon as possible, so visit this site for more information.