Class Action

Ponzi Schemes

Latest News


Yet Another Classic Ponzi Scheme

Yet Another Classic Ponzi Scheme

Yet Another Classic Ponzi Scheme

By Scott Starr

An article that recently appeared on, 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.