Category: PONZI SCHEMES

A Ponzi Scheme is a fraudulent investment scam where returns to existing investors are paid with funds from new investors rather than from profits generated by the investment. The scheme typically attracts investors by promising high returns with little or no risk. Initially, early investors may receive payouts, encouraging them to invest more or to attract others. However, as the scheme grows, the operator struggles to find enough new investors to pay earlier investors, leading to collapse. Ponzi schemes rely on a continuous influx of new participants to sustain the illusion of profitability and payouts. When the scheme unravels, investors often lose their money as the promised returns are unsustainable and the operator absconds with remaining funds. Regulatory authorities vigorously pursue and prosecute Ponzi scheme operators due to their inherent deceit and harm to investors.

CFTC-PR-8931-24

File ID:  CFTC-PR-8931-24 Date:  July 3, 2024 Accessed:  July 8, 2024 Headline:  Federal Court Enters Summary Judgment Against Oregon Man and Orders $83 Million in Restitution for Fraud Victims Source:  https://www.cftc.gov/PressRoom/PressReleases/8931-24 Categories: COMMODITY FRAUD MISAPPROPRIATION PONZI SCHEME CFTC-PR-8931-24 – Viewer: ▼▼▼ (Download PDF File )

SEC-PR-2024-35

File ID: SEC-PR-2024-35 Date: March 12, 2024 Accessed: July 3, 2024 Headline:  SEC Charges 17 Individuals in $300 Million Crypto Asset Ponzi Scheme Targeting the Latino Community Source: https://www.sec.gov/newsroom/press-releases/2024-35 Categories: AFFINITY FRAUD FRAUDS TARGETING LATINO AMERICANS CRYPTO INVESTMENT FRAUD FOREX INVESTMENT FRAUD PONZI SCHEMES SEC-PR-2024-35 – Viewer: ▼▼▼ (Download PDF File )