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NEW In-House Counsel | Insurance | Intellectual Property | Immigration | Natural Resources | Real Estate | Tax

Maximizing Ponzi payback

Thursday, November 19, 2015 @ 7:00 PM | By Katie Mak

A “Ponzi scheme,” made famous by Charles Ponzi and his fraudulent postage speculation in the 1920s, is little more than an arrangement in which a fraudster pays returns to investors from monies obtained from later investors rather than from any real “profits” of an underlying business venture. Eventually these purported profits dry up, the Ponzi scheme is exposed, and more often than not the perpetrator and its business entities find themselves in bankruptcy or receivership proceedings.

Unravelling a Ponzi scheme once it has come to an...