Phoenix White-Collar Crime Lawyers | Arizona Ponzi Schemes

The Ponzi scheme has become prevalent in recent years, especially with the poor economy and so many folks scrambling to stash their remaining cash in high-return investments to weather the storm. Ponzi schemes are like many other Arizona white-collar crimes in that public opinion seems to be that such “schemes” are run only by very, very rich people who specifically plan the scam to take their unsuspecting clients’ money. However, the truth is that many Ponzi schemes are not due to malice, but are actually born of pure bad luck, bad planning, or panic.

What is a Ponzi scheme?

A Ponzi scheme is an investment scheme in which investors are promised high returns, generally within a short amount of time, but in actuality, the money is never invested and instead goes to paying off earlier investors to “keep up appearances.”

How does a legitimate investment opportunity become an Arizona Ponzi scheme?

Some Ponzi schemes start out as completely legitimate investments, but begin to do poorly over time or don’t work out as planned. As money becomes tighter, or as news of progress becomes worse, the person offering the investment begins to panic and pays some dividends straight from new investors, hoping that things will improve soon. It all spirals downhill as the cash is funneled into business expenses and paying off earlier investors, until the whole thing topples.

What can I expect if I’m accused of running a Ponzi scheme?

If you are accused of running a Ponzi scheme or a similar Arizona financial scam, you may face charges on the state level, the federal level, or both. Often, other additional charges can complicate your case, including charges of mail fraud, bank fraud, or wire fraud. If convicted, you may be facing extensive fines and years in prison.

If you or a loved one has been accused of running a Maricopa County Ponzi scheme, contact the Phoenix criminal defense lawyers with Curry, Pearson & Wooten right away at 1-888-929-5292. Our goal is to make a difference in the life of each and every one of our clients. We offer a free consultation and clear, honest answers about the options for your Phoenix criminal case. We also offer a free, informative book to help you understand more about your rights: Arizona Criminal Law – What You Must Know.