Phoenix Ponzi Schemes Lawyer
Many people in society that didn’t know what a Ponzi scheme was five years ago know what it is now. That is because the crime has become more prevalent and news of this type of crime has made its way into mainstream media. The reason why this crime is such a big deal is because investors want to invest their money for high returns so that they can improve their financial situations. Instead, a scheme such as this causes the investors lose their hard earned money.
But what adds to the unfortunate nature of this crime is that a lot of Ponzi schemes occur because of bad luck rather than someone trying to undercut the investors. Panic and bad planning are major contributors. This can result in a Ponzi scheme charge that can then lead to a lot of personal and legal damage if convicted. The idea is to prevent this damage from occurring by hiring a qualified Phoenix federal crimes attorney as soon as possible. The last thing you want to do is find yourself standing in a Phoenix or Tucson federal courthouse or some other federal courtroom, being sentenced for something that was an honest mistake.
How Ponzi Schemes Occur
A Ponzi scheme occurs when an investor is promised a high return in the shortest period of time. Investments can be advertised as hedge funds, securities, and mutual funds. Even postage stamps have been the subject of Ponzi schemes. This postage stamp scheme is what resulted in the Ponzi scheme receiving its name. In 1920, Charles Ponzi tricked investors into investing in postage stamps. When he did this, he was telling the investors that they would receive a return that he just could not guarantee. He used it to draw in new investors.
This is a fraudulent scheme because the returns that the investors see themselves receiving come by their own money or money that other investors have put in. The returns are not actual profits. In order to keep such a scheme going, a constant flow of money is needed. Over time, everything collapses because the payments and earnings just don’t match up.
Ponzi Scheme Consequences
If you are charged for conducting a Ponzi scheme, you would find yourself facing charges from both the federal government and the State of Arizona. This means that a conviction could lead to fines and prison times for both and the prison terms can be quite lengthy and the fines very high. There have been Fortune 500 executives given very long sentences, especially when the victims of the schemes have been charitable organizations and the elderly.
To avoid such long and harsh sentences, Myles A. Schneider, who possesses a degree in Corporate Finance, can defend you to the state and to the federal government to show what really happened. That way you can receive the best outcome possible.
Contact A Phoenix Ponzi Schemes Attorney
If you have been accused of a Ponzi scheme, it is imperative that you seek legal assistance as soon as possible. With the right attorney working with you, you are able to effectively challenge the charges and work toward reducing charges, dropping some charges, or having all of the charges dropped. To find out more about how we can help you in your unique case, call us at 602-926-7373 to schedule your free consultation.