Ponzi Schemes: Here To Stay

International Bar Association Daily News- There is a dearth of protections available to the victims of Ponzi schemes at the international and domestic level.

Ponzi schemes are large-scale frauds often spanning multiple jurisdictions.  Their thirst for new customers means they often cross borders.  They lure customers in with promises of higher returns than other schemes.  In reality, these returns are paid using investors’ own money, or money paid in by subsequent investors.

When a Ponzi scheme implodes, it raises a number of difficult issues.  These range from regulatory responsibility, a myriad of different proceedings, and the tracing of assets across various jurisdictions.  Click here to read more.