How can one person take advantage of so many? And is it possible to identify one before you hand over your money?
You hear about Ponzi schemes on the news and wonder how so many people could fall for such and old trick. But behind each Ponzi scheme is always a villain, a person who has orchestrated the entire scam who literally holds all of the power in his/her hands. What goes on in their minds? And how do they take advantage of so many people?
Here are some characteristics that link the psychology of many Ponzi schemers:
Aloofness
These individuals are extremely good at talking a lot and managing not to give many (if any) strong details. They can be engaging, charming and warm, but there is little substance behind what they say. A Ponzi schemer will talk more about the lofty rewards that will be gained by investing than what the funds will actually be invested in.
Seems trustworthy
Many Ponzi schemers are extremely warm and charming—and are keenly aware that they instill trust in the people that they meet. They are able to remember personal details about many of their clients and do a good job of making people feel comfortable around them. Trust is key to getting new investors and these individuals will be extremely good at sounding credible and instilling trust.
Extremely persuasive
Perhaps one of the strongest characteristics of a Ponzi schemer is their ability to persuade. They will use a wide range of persuasive tactics from repetitive requests, peer pressure (letting you know how many others are benefiting from this investment) and just wearing you down.
Arrogant
Behind the surface, however, a Ponzi schemer is incredibly arrogant. It does not take much to realize that a Ponzi scheme will eventually collapse, once new investors run out. However, the mastermind of a Ponzi scheme is arrogant enough to think that they can beat the system, cheat hundreds (if not thousands) of people and get away with it. Some are so good that it takes years to catch them—like Bernie Madoff, who ran his scam for 20 years and defraded clients of $65 billion in the process.
Intrinsically selfish and dishonest
As you might expect, at the core of the Ponzi schemer is an intrinsically selfish and dishonest person who is really only trying to make themselves rich. Lying comes easy to a Ponzi schemer; in fact, in some ways, he/she have probably convinced him/herself that the lying is justified, or believes the delusion what he/she is doing is actually a version of the truth.
Ponzi schemes always fold, leaving the mastermind in significant legal trouble and the victims trying to sort out how they will manage after such a loss. Silver Law Group represents victims of Ponzi schemes and our lawyers have recovered millions of dollars through securities arbitration and the courts.
Let us help you recover your investment loss so that you can move on with your life. This is one of our areas of specialty and we are passionate investor advocates. Call our team today at 1-800-975-4345 for more information or to speak with one of our experienced attorneys.