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You may have lost money in your investment portfolio,
due to mismanagement and not even know it.

Distressingly similar fact pattern prevalent in many Ponzi schemes

There often seems to be a boilerplate one-size-fits-all manual that Ponzi scheme architects and operators across the country duly follow as they dupe investors and try to perpetuate their fraud.

Whether in California or elsewhere, that routinely subscribed-to model features these characteristics:

  • Hype an alleged investment opportunity
  • Tout promised outsized returns
  • Pay first-in-line investors with funds received from subsequent investors
  • Never actually invest any monies in a bona-fide business
  • Use received proceeds to fund a personally luxuriant lifestyle
  • Await imminent discovery and the ultimate collapse of the scheme

One thing emerges as prominently true and inevitable with every Ponzi scheme that ever existed, namely this: It cannot indefinitely sustain itself and will eventually collapse like a house of cards.

That is exactly what happened with such a scheme that was spotlighted recently in one national financial publication. The bottom line with that ruse is that a California woman was able, but only for a time, to defraud a stream of investors who she led to believe could profit from investments in a real estate project.

In classic Ponzi fraud style, that turned out not to be the case. As noted in the news report, the woman never actually invested any money into a project, but, rather, used hard-earned investors' cash "for her own business and personal expenses."

She was outed eventually, of course, but only after investors had been fleeced. A federal judge in Fresno recently sentenced her to a multi-year prison term and ordered her to come up with more than $1.5 million in restitution for her victims.

Fraud victims are far from routinely being unsophisticated individuals comparatively susceptible of being defrauded. In fact, even the most seasoned investors can be -- and often are -- beguiled by con artists into handing over their money in phantom schemes.

Sometimes they lose everything. In other instances, though, they can take strong and proactive legal action to combat business fraud and to recoup their losses.

A seasoned securities law attorney who routinely advocates forcefully on behalf of defrauded investors can help them do that.

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