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What factors are associated with Ponzi schemes?

On Behalf of | Jun 3, 2018 | Federal & White Collar Criminal Defense |

If you are one of the many financially savvy people in Nebraska who is inclined to be involved in new investment ventures, you will want to understand some of the qualities often linked to illegal activities. The fact of the matter is that there may well be a fine line between a legal financial transaction or plan and an illegal one so understanding these details can be very important for you. 

A Ponzi scheme is one form of an alleged scheme to embezzle money essentially. As explained by the United States Securities and Exchange Commission, this type of venture is named after a man who is said to have defrauded many investors in a plan involving postage stamps nearly a whole century ago. Today, suspicions may be raised about some investment programs if they share some of the features of that activity.

These features include returns that tend to be very stable and consistent even during rapidly changing or turbulent market conditions. Problems with investment tracking, statements or other documentation may also contribute to some concerns. Investors are cautioned about being involved in programs that promise to pay higher-than-average returns despite the fact that making money is the whole point of investing money to begin with.

This information is not intended to provide legal advice but is instead meant to give residents in Nebraska an idea of some of the qualities commonly associated with fraudulent investment schemes that may lead others to incorrectly identify a legitimate investment as an act of fraud.