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Fraud Crimes and Ponzi Schemes

by | Jul 28, 2017 | Criminal Defense, Fraud, White-Collar Crimes

Fraud is considered a white collar crime. That is because it is a crime that happens in a business office, behind the scenes that take money from a victim without them knowing it. Millions of dollars are lost every year from these heartless crimes. They are far from victimless crimes.

You may have heard of some fraud crimes being called, “Ponzi” schemes. According to our white collar crime lawyers, a Ponzi Scheme is a type of fraud crime where investors who have been there longer are paid revenue that was not generated from normal business activities or financial trading, but by the funds being paid in by new investors. This crime is illegal, and sooner or later it is always exposed, and it always ends bad..

Charles Ponzi

The Ponzi scheme is named after Charles Ponzi, from Boston who is famous for his scheme. Charles Ponzi convinced people to purchase postal replies in other countries at a discounted price, and he would sell them at full face value in the United States. He promised his investors a 50% profit in only 45-days or 100% profit in only 90-days. The idea took off, and Ponzi soon had plenty of investors. The problem was, Charles Ponzi was actually taking the money from new investors to pay his old investors. He managed to keep this scam up for a bit over a year. In the end, his clients lost more than 20 million dollars.

While Charles Ponzi’s scheme became very famous due to the magnitude of his activities, he was not the first to defraud investors with this type of crime. People have used similar financial schemes as far back as the 1800’s, and they have been featured in many books, novels, and movies.

Harsh Penalties for Fraud and Ponzi Scheme

Fraud and Ponzi schemes are serious crimes, and they carry serious consequences. Of course, the amount of money involved will have some effect on the sentence. However, it is not unusual for a case like this to include thousands or millions of dollars, and the penalties can be decades (sometimes up to 50 years) in prison and fines equaling the monies stolen.

Due to the nature of these crimes and our global marketplace, bank wire transfers are often part of the crime. They carry their own harsh penalties of large fines and prison time. It doesn’t end there. The offender will be looked at for infractions on tax evasion laws, conspiracy, and money laundering among others.


If you have been accused of fraud, a Ponzi scheme, or any related crime in the state of Florida, you need to contact a qualified white collar crime lawyer. You may have been in a legitimate business and were included in this crime without your knowledge. Maybe things began innocently but then went astray quickly. This is a major crime, and you need the assistance of an experienced white collar crime attorney. The case will be tried in Federal Court, and you will face the same penalties as those who deliberately broke the law.