A Ponzi Scheme Case With A Better Ending

4/20/2011

Ponzi scheme cases are now a staple of SEC enforcement. Over the last year or more the Commission has brought dozens of these cases. Most have the same common elements. The promoter has a trading or investment system. The investment is safe potential investors are told. It also has good returns. A good history reassures investors. The returns are spectacular for some schemes while for others they are steady and reliable regardless of the market conditions. Above average returns holds their interest. The investors flock in. Millions of dollars flow to the promoter. In many cases investors are told about their good returns. Some investors are even paid part of the returns. Life is good, particularly for the promoter who is living large with part or all of the investor cash. The end is predictable. The scheme crashes and law enforcement cleans up the scam. By that date of course there is little to nothing left for the investors. The full article is available my clicking here.