Securities Arbitration Lawyers BlogWhy South Florida is a Target for Ponzi Schemers
Learn what to look for to avoid being swindled by a Ponzi scheme in South Florida
A Ponzi scheme is a type of investment fraud that is directed by a single individual who creates an entire scheme that hinges on new investment funding being used to pay existing investors. As long as new investors are plentiful, the scheme can work and the orchestrator can benefit financially for years. Ponzi schemers generally urge investors to promote the investors preying on whole communities, religious institutions and similarly situated people.
Some of the most elaborate and successful Ponzi schemes have spanned decades (Bernie Madoff was engaged in fraudulent activities for at least 20 years). But once new investors dry up, the investment scheme quickly collapses and numerous investors lose large sums of money.