Have you been negatively affected by a pyramid or ponzi scheme?

You may be entitled to compensation
from the creators of these schemes.


Fill out the form below or call us at
(781) 350-0000 for your free consultation.

What is a Pyramid or Ponzi Scheme?

A pyramid scheme and a Ponzi scheme are fraudulent investment schemes that rely on recruiting new participants.

In a pyramid scheme, people invest money with the promise of high returns and earn money from the fees paid by those they recruit. As more participants are recruited, the structure takes the shape of a pyramid. Eventually, when new recruits become scarce, the scheme collapses, causing most participants to lose money.

In a Ponzi scheme, investors are promised high returns and receive profits from money contributed by new investors rather than legitimate investments. When new investors dwindle, the scheme falls apart, resulting in significant losses for the majority of participants.

Both pyramid schemes and Ponzi schemes are illegal and should be approached with caution.

$65 Billion:

Total estimated losses from defrauded investors
coerced by the Bernie Madoff Ponzi scheme in 2008

How to tell if the investment opportunity is a Ponzi or pyramid scheme?

Here are some key points to consider when trying to identify a potential pyramid or Ponzi scheme:

  • High returns promised without associated risks
  • Emphasis on recruitment rather than the product/service
  • Lack of sustainable revenue from a tangible product/service
  • Complex compensation structures based on recruitment
  • Reliance on constant influx of new investors
  • Lack of transparency and evasiveness about critical information
  • Unregistered or unlicensed operators
  • Pressure to invest or recruit forcefully

Blow the whistle on Ponzi or pyramid schemes

Whistleblowers play a vital role in exposing Ponzi and pyramid schemes by reporting wrongdoing. They are individuals with access to financial or market information who recognize irregularities.

The Whistleblower Program ensures anonymity and provides incentives, allowing whistleblowers to receive rewards of up to 30% of monetary sanctions if the sanctions exceed $1 million in SEC or regulatory agency cases. Whistleblowers are also protected from retaliation.

To maintain anonymity and access program benefits, whistleblowers must be represented by counsel, who handle filings and communication with the SEC. It’s important to note that SEC Whistleblower protections don’t apply to those reporting suspicions to supervisors or corporate compliance offices, a ruling that has raised concerns about potential future changes to the program.

If you are interested in learning more, please contact Bonsignore Trial Lawyers by filling out the form above or calling us for a free case review at (781) 350-000!

Whistleblower Settlements include:

  • A former JPMorgan Chase executive received over $50 million as a whistleblower payout in 2020.
  • In 2018, a whistleblower received a record-breaking payout of over $83 million for providing critical information in a securities fraud case.
  • A former Monsanto executive was awarded $22 million in 2017 for exposing accounting misconduct.
  • An anonymous whistleblower received over $20 million in 2016 for providing significant information leading to an enforcement action against a financial services company.

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