A Ponzi scheme is an illegal business practice where new investors’ money is paid to and described as income to earlier investors, but is actually a distribution of capital. A basic investment scam raises money and disappears but the Ponzi scheme stays in business by circulating investor funds with little or no legitimate investments.
Our forensic accountants “follow the money.” We reconstruct the scheme tracing the movement of funds into and out of bank accounts preparing cash flow analyses to identify the sources and use of funds to help in the recovery. We identify and investigate related parties and companies, including possible shell companies.
Ponzi schemes are the oldest and most common type of investment fraud, because they can take any shape and be run by anyone.
