Investors, entrepreneurs and others in New York who are interested in finding new ways to grow their wealth and pursue new business interests know that sometimes they need to be careful about which ventures they participate in. With fraud being a concern in today’s world, accurate records and other documentation is important. So too is an understanding of what types of things may raise a flag to outside persons unnecessarily.
Not everyone accused of embezzlement or other forms of fraud is guilty but when you know what situations may put you more at risk of being accused of these things, the more you may be able to protect yourself. A Ponzi scheme is a form of embezzlement. According to the U.S. Securities and Exchange Commission, Ponzi schemes are named after a man who is said to have illegally defrauded people in the 1920s.
One hallmark of alleged Ponzi schemes is a rate of return on investment that is much higher than the average. Certainly people who manage investments that are performing well should be pleased but the risk of being accused of fraud can put a damper on that. Another thing to watch is having returns that are overly consistent as this is also said to be a characteristic of some operations said to be fraudulent.
If you would like to learn more about different forms of theft and white collar criminal charges, please feel free to visit the Ponzi scheme and embezzlement accusation page of our New York criminal defense website.