Yet Another Classic Ponzi Scheme
By Scott Starr
An article that recently appeared on Law360.com, authored by Dean Seal, titled “Tenn. Tractor Supplier Gets 3 Years For $43M Ponzi Scheme” which describes another classic Ponzi scheme in a small Tennessee town of approximately 5,000 residents, Sparta, Tennessee. The Ponzi schemer scammed his friends, relatives, and fellow citizens out of $43 million. I would recommend that you read this short article carefully as it represents the classic hallmarks of a Ponzi scheme.
Starr Austen & Miller has represented hundreds of victims of Ponzi schemers, just like the scam described in the article. Ponzi schemers always follow the same basic format:
- They hold respected positions of trust in their community;
- They approach the financially naïve, trusting, and often inexperienced;
- They promise the trifecta of what almost all investors are looking for: high returns – typically quoting 10%, liquidity – you can get your money whenever you want, and safety;
- Although they are quick to take your money they are slow and vague when it comes to giving explanations; and
- Except for the fortune few who get out early, they squander their clients’ investments leaving a large majority holding the bag.
Don’t be scammed by a Ponzi schemer. If you or a loved one believe you may have been victimized by a Ponzi scheme, immediately call Starr Austen & Miller. We have recovered millions for folks in these situations.
The team of investment fraud lawyers at Starr Austen & Miller LLP fights for the protection of investors and handles cases involving securities arbitration misrepresentation, overconcentration, broker fraud, negligence and breach of trust.