A Ponzi scheme is a financial operation in which the investors are tricked in to investing money into an enterprise which supposedly yields great returns on the investment. In a Ponzi scheme the return on investment are not any actual profits earned by the organization but the investor’s own money or money from successive investors. The scheme is destined to collapse because the earnings of a Ponzi scheme are much less then payments to investors.
Running a Ponzi scheme is a federal crime, which is charged under a wide array of federal criminal statutes such as investment fraud, bank fraud, conspiracy, wire and mail fraud. Penalties for these crimes include significant prison time and restitution of funds to the investors.
If you are being subpoenaed or investigated by federal law enforcement for white collar crimes in New York, then call our office at (212) 577-6677 for professional legal advice.