Ponzi schemes are a type of investment fraud in which investors are promised high returns with very little downside in Seattle, WA, and the surrounding areas, but the truth is that money from later investors is used to pay early investors. This fraud scheme was named after Charles Ponzi, who used it in the 1920s. But how do you work through and discover this fraud? Our team at Sugarman & Company LLP is well-versed in financial documents and in tracing money through bank accounts and other financial instruments. While the scheme will ultimately collapse under its own weight, most people will not get their money back and will be defrauded. While everything might seem legit, the truth is that there are no investments, and, in the end, the operator of the Ponzi scheme will retain or spend almost all the money. Talk with our team today to learn more about our Ponzi scheme forensics and how we can help you maximize the return of your lost funds.
Follow The Money
For many investors in a Ponzi scheme, they are not following where the money goes, but instead they have a level of trust with the person they are investing with. But if they were to follow the money, they would learn that the organizers themselves are skimming off money for themselves. This money that they are skimming for themselves will be used to buy things or will be stashed somewhere else, often offshore in another country to prevent the money from being returned.
Following the money, our Ponzi scheme forensic experts can recreate the how and where of the money. There is a paper trail, no matter how hard the operator of the Ponzi scheme tries to hide it. They might create shell companies to hide where the money is going and even create fake identities as well to make things look better than they are.
Ultimately Unsustainable
The thing about the Ponzi scheme mechanics is that in the end, it will collapse because the entire operation is built on lies. High, consistent returns don’t exist in the real world, yet people want to believe they do, and early investors will attest that they struck gold, even though they were paid with subsequent investors’ money rather than legitimate returns. It takes time to unravel a Ponzi scheme, but our team has decades of experience sifting through financial documents and piecing together the pieces.
If you suspect that you may be involved with a Ponzi scheme in Seattle, WA, and the surrounding areas, bring in the team from Sugarman & Company LLP. We will provide the necessary insights to legal teams or the courts to explain how it all happened and where the money went. We will also be expert witnesses to break down the components of the Ponzi scheme. Contact us today to learn more about our Ponzi scheme forensics.