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Ponzi scheme, a white collar crime

On Behalf of | Nov 26, 2014 | White Collar Crimes |

White collar crimes are serious offenses. In Calcasieu Parish, Louisiana, most people know about white collar crimes or fraud offenses. Sometimes, those who are charged with fraud-related offenses are professionals involved in financial transactions. A single error in documentation can lead to an investigation involving federal officials. It is important to note that white collar crimes come in various forms and one of the most well-known is the Ponzi scheme.

Generally, a Ponzi scheme pertains to a fraudulent investment. Ponzi scheme organizers promise investors a high return on their investments. In order to attract more investors, organizers use the money from new investors to pay the earlier investors and to keep the cycle going. Ponzi schemes appear to be legitimate at first, until the cash flow stops.

When someone faces fraud allegations, such as a Ponzi scheme, that person is often ostracized by the community, resulting in a damaged reputation. Before an accused is charged with fraud, investigators thoroughly investigate the case. They collect substantial evidence before charges are brought against an individual. Once the accused person is apprehended, that person has to explore all legal avenues in order to avoid conviction and the resulting penalties. The defense can start by examining the evidence presented by the prosecution. The defense also can question the validity of the evidence and counteract it with its own evidence. Finally, the defense can perform a separate investigation and collect evidence that can further bolster the strength of the criminal defense.

People accused of white collar crimes may find it difficult to craft a strong criminal defense by themselves. With legal advice, they may find the best option that suits their unique situation. They may consider speaking with a criminal defense attorney in order to better understand the offense that they are facing.

Source: U.S. Securities and Exchange Commission, “Ponzi schemes,” accessed on Nov. 18, 2014

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