California Ponzi Scheme Lawyer

In California, if you have been lured into a fraudulent investment operation and promised high returns, only to find out the payouts to you have been funded by money coming in from new investors, you may have invested in a Ponzi scheme. These can be tricky and complex situations, and a California Ponzi scheme lawyer can review the details of your circumstances and determine if you have any grounds for legal action to recover your losses.

Anyone may be targeted by a Ponzi scheme, and, in some cases, they can be difficult to spot. There is no guilt to be felt if you have been taken advantage of by a fraudulent investment broker or advisor. The securities or investment fraud attorneys at Rosenberger + Kawabata are here to help. We can work toward holding the responsible party accountable for their actions and deception and help you recoup the losses you have suffered.

Ponzi Schemes in California

When broker-dealers and investment advisers transact in securities on behalf of investors, they are required to exercise reasonable diligence to ensure the price to the investor is the best possible. This requires the broker-dealer to examine the character of the market for the security, the size and type of the transaction, the number of markets checked, the accessibility of the quote, and the terms and conditions of the order.

Trading platforms that receive “payment for order flow” can financially benefit from routing trades to broker-dealers without review of the execution quality, thereby harming investors’ positions. Broker-dealers or investment advisers who fail to fully and promptly execute trade orders in accordance with these principles can be held liable in securities litigation or FINRA arbitration.

In a Ponzi scheme, an individual may make an investment through the advice of a fraudulent broker-dealer or investment advisor. The investment operation involved in a Ponzi scheme typically does not make any real money from these investments and, instead, pays returns to investors with money it receives from subsequent investors. This is an illegal practice and, in most cases, will collapse, causing great financial loss to the investors who have been deceived.

Rosenberger + Kawabata: Defending You in a California Ponzi Scheme

At the offices of Rosenberger + Kawabata, we understand that involvement in a Ponzi scheme can happen to practically anyone and want to offer our support and compassion. There is no reason to feel guilt or shame. Instead, it’s time to hold the liable parties responsible for their fraud and to do whatever it takes to gain back all or a portion of the assets you invested. When you work with our team, there are several ways in which we can help you, including:

• Reviewing your case to determine the correct legal strategy to put into effect
• Evaluating your financial losses to determine how much compensation you may be entitled to
• Explaining to you the complex state and federal laws and regulations regarding these fraudulent investments
• Assisting you in gathering evidence that can support your case, such as bank statements or brokerage records
• Handling all of the legal paperwork and filing deadlines required in your claim
• Bringing a civil claim against the liable parties, whether they are corporations or individuals
• Leading any necessary FINRA arbitration
• Assisting you in identifying any outlets for financial compensation recovery

Signs of a Ponzi Scheme

Even if you have already lost funds in a Ponzi scheme, knowing the signs of one can save you from making a similar mistake in the future. It can also help spread awareness to other friends or family who may find themselves in similar situations at some point down the road. The most common red flags of a Ponzi scheme can include:

• Claims of excessive and exaggerated earnings
• Promised guarantees for extremely high returns with little or no risk involved
• Investments that are unregistered
• An initial and consistent flow of returns, even in poor market conditions
• Overly complex, unexplainable, or secret investment strategies
• A lack of documentation in regard to your investment
• Experiencing issues when removing earned funds from your account

It is of vital importance that you do your research before investing. However, even if you take all the right steps, you may still find yourself wrapped up in a Ponzi scheme. The attorneys at Rosenberger + Kawabata can help you hold the liable parties accountable for their fraud and deceit.

Parties Who Are Commonly Responsible for California Ponzi Schemes

When you work with the firm at Rosenberger + Kawabata, we can assist you in identifying and holding accountable the parties who have involved you in a Ponzi scheme. The most common parties who can be held liable for your losses include the following:

• Financial advisors
• Broker-dealers
• Sales agents
• Investment firms
• Scheme operators
• Legal advisors
• Business partners
• Banking corporations
• Accountants or auditors
• Influencers

Is Ponzi the Same as a Pyramid Scheme?

In California, a Ponzi scheme is different from a pyramid scheme. In a Ponzi scheme, the organizer or operator behind the scheme pays investors with funds from new investors rather than from any profits made. They will interact directly with investors and do not typically have any real product or service. In a pyramid scheme, individuals who participate make money by bringing in new participants. They also typically include some kind of product or service.

What Are Some Examples of a Ponzi Scheme?

There are several common examples of a Ponzi scheme in California. These examples can include mail fraud, or schemes through postal communications, wire fraud, or schemes that are acted on through methods of electronic communication, real estate fraud, or schemes which involve the fraudulent investments of real estate, commodities fraud, promising high returns to investors in the commodities market, and securities fraud, involving stocks or bonds.

Can I Get My Money Back If I Invested in a Ponzi Scheme in CA?

Unfortunately, there is no absolute guarantee that you will be able to recover your losses when investing in a Ponzi scheme. However, your attorney does have the ability to explore a wide range of legal avenues to try to recover these losses on your behalf. This can involve seeking a claim against the perpetrator or the financial institution which facilitated or initiated the fraud.

What Should I Do If I Suspect I Invested into a Ponzi Scheme?

If you suspect that you have mistakenly invested in a Ponzi scheme, it is imperative that you act quickly. Cease all further investments into the scheme, record or make documentation of everything, including items such as email communications with your broker-dealer or investment advisor, or account statements. Report the scheme to the correct regulatory bodies, and consult with a seasoned attorney who understands these complex legal situations.

Speak with a Trusted Securities Fraud Lawyer Today

If you believe you have been involved in a Ponzi scheme or have suffered financial losses due to a fraudulent investment you were advised to make, it is time to hire an attorney who can hold the accountable parties responsible for their actions. Contact Rosenberger + Kawabata to evaluate the recovery of losses caused by a broker’s failure to follow best execution requirements.