Ponzi scheme hits home in South Florida

Ponzi scheme hits home in South Florida

Ponzi schemes have been around for over one hundred years; however, since the Bernie Madoff scandal erupted and thousands of investors were defrauded of billions of dollars, this has become more of a household phrase, affecting many “average” Americans. More recently, the South Florida community was shocked to learn that the senior partner of a prestigious law firm was running a billion dollar Ponzi scheme. It seems that every other week you open the newspaper to find out that another investment fraud has been discovered.

Whether it is the former chairman of the NASDAQ, or a prominent, philanthropic attorney, arrests and investigations for Poniz schemes and other investment frauds are becoming more and more visible. Usually, what becomes the center of attention is the lavish lifestyle that the perpetrator has lived, benefiting off of ill-gotten proceeds. What is lost in all of the news coverage is how easily the investors fall for such schemes, forgetting that sometimes things may be too good to be true.

A Ponzi scheme is a fraudulent investment operation that pays out returns to investors with the investment money of new investors. It is a perpetual system, that if left alone and allowed to continue without interruption, would continue to pay old investors with new investors’ money for a long period of time. However, it all goes wrong when something goes against plan and someone pulls out, not enough new investors are recruited, or another aspect simply fails. Even if left alone, the Ponzi scheme will eventually collapse under its own weight, as it is nearly impossible to recruit new investors at the pace needed to make payouts to previous investors. While this type of investment fraud was seen as early as 1857 in a Charles Dickens novel, the first known case was in the 1920s by Charles Ponzi (hence the name).

The South Florida community was recently shocked to learn of an alleged Ponzi scheme conducted by a prominent Ft. Lauderdale attorney. While the details of these scheme are still being uncovered, it is alleged that this scheme spanned over several years and over $1 billion. This case was such a shock to the South Florida community because this particular attorney was known for his philanthropy, making over $1.9 million in political contributions and serving on the board several charitable organizations. The details of this scheme, and the people affected by it continue to remain on the front page of the newspapers around the community.

The law firm of Robbins, Tunkey, Ross, Amsel, Raben & Waxman, P.A., is one of the largest criminal defense firms in the State of Florida, with all seven of its attorneys focusing solely on zealously representing clients in the criminal courts across the country. The firm, and six of its attorneys enjoy the highest rating (AV) by the Martindale Hubbell Legal Directory, and there are also board certified criminal trial lawyers and board certified criminal appellate attorneys. In addition, the firm has been voted the Top Miami Criminal Defense Firm by Miami Magazine and its members are consistently voted among the best Miami criminal lawyers by their peers in annual surveys. The attorneys represent clients in all types of criminal cases, including investment fraud and “Ponzi” schemes. To learn more visit www.miami-criminal-defense-lawyer.com or you can call the office at 305-858-9550.

2250 SW 3rd Avenue
Fourth Floor
Miami, Florida 33129
Phone – 305-858-9550

About author : Alan S. Ross attended the University of Miami where he received Bachelor of Business Administration & Juris Doctorate degrees. He has been a member of The Florida Bar since 1976 & practice the defense of criminal cases in both State & Federal Courts. He has been a Partner in Miami criminal defense lawyer firm & the firm of Robbins, Turkey, Ross, Amsel, Raben & Waxman, P.A. since 1978

Legal and Law | November 21st, 2009