Header graphic for print

Category Archives: Ponzi Analysis

Subscribe to Ponzi Analysis RSS Feed


Posted in Ponzi Analysis

While some Ponzi schemes are in fact the result of terrible business judgment or other factors, many nonetheless result from overpowering greed, a vice classically known as avarice. Avarice rears its ugly head in investment fraud cases as a distinguishing characteristic – hence the mansions, luxury cars, fancy vacations, private jets and blowouts in Las… Continue Reading

Huckster Psychology 101

Posted in Ponzi Analysis

How is it that time and again Ponzi schemers are able to fool so many of us, whether we’re actual investors or just the bystanders who took their fraudulent business as legitimate? First of all, recall the everyday wisdom that hindsight is 20/20. Only in retrospective does it seem like everyone should have known that… Continue Reading

Supreme Court Decision Aids Ponzi Victims

Posted in Legal Representation, Ponzi Analysis

The United States Supreme Court ruled today, February 26th, that victims of R. Allen Stanford’s massive $7.2 billion Ponzi scheme may proceed in state court actions against law firms, accountants and investment companies that allegedly aided the enormous fraud. The firms that had been sued argued that federal securities law insulated them from state-class action lawsuits. … Continue Reading

IRS Rules for Clawbacks

Posted in Legal Representation, Ponzi Analysis

You could be the victim of a Ponzi scheme? At first you think that it simply can’t be. You know that the promoter showed inventory – financial statements – tax returns. You saw it yourself. Friends invested. It looked legitimate.  Now there’s shock. Racing thoughts. Betrayal. The promoter was a liar? A cheat? A fraud? The… Continue Reading

Hackard Law – Defending Victims of Investment Fraud

Posted in Bankruptcy Clawback News, Legal Representation, Ponzi Analysis

Here at Hackard Law, 2013 has been a strong year for Ponzi Clawbacks. Not only have we covered well over 200 stories so far, we’ve also provided insight and analysis into the workings of investment fraud schemes, their criminal elements and the aftermath- when bankruptcy clawback litigation can come into play. We’re especially glad that… Continue Reading

Triple Damages Available in Investment Fraud Cases: Bell v. Feibush Changes the Legal Landscape

Posted in Bankruptcy Clawback News, Ponzi Analysis

Analysis provided by Betsy Bynum. Bell v. Feibush, a case decided in January of this year by the Fourth Appellate District of the California Court of Appeal, has received attention for its recognition of the availability of treble damages for the theft of personal or real property- three times the amount of actual damages inflicted. … Continue Reading

Behind the Ponzi: A Dictionary of Useful Terms

Posted in Ponzi Analysis, Ponzi Profiles

Algorithm: A super-fancy mathematical formula applied by a trading robot to generate fantastic profits without any risk. Asset Management: Taking the money entrusted by investors and blowing it on the construction of your dream mansion, a yacht and a Rolls Royce. Bona Fides: Word-of-mouth confirmation. “Bill told me he’s a trillionaire and wants me to… Continue Reading

Good Friday

Posted in Ponzi Analysis

As much as we at Hackard Law enjoy pointing out the more ridiculous aspects of Ponzi schemes, their dark side is also readily apparent. Along with other types of fraud, the Ponzi scheme is not just theft, for at its core is the lie. Deceit defines this crime, and it’s a tactic that allows scammers… Continue Reading

Contingency Fees, Adversary Claims and Ponzi Cases

Posted in Bankruptcy Clawback News, Legal Representation, Ponzi Analysis

The contingency fee system is a litigation reality unique to the United States. This system plays a significant role in the selection and prosecution of civil cases, including the prosecution of adversary claims against investors and/or victims of Ponzi schemes. While it is true that contingency fees can allow the poor and impoverished a “key… Continue Reading

Interview with Chuck Malkus, Author of The Ultimate Ponzi

Posted in Book Reviews, Ponzi Analysis, Ponzi Profiles

The Ultimate Ponzi The Scott Rothstein Story By Chuck Malkus. Illustrated. 250 pp. Pelican Publishing Company. $26.00. The Ultimate Ponzi: The Scott Rothstein Story is available for order at Barnes & Noble and Amazon.com.  *** Today Hackard Law interviews public relations executive and communications expert Chuck Malkus, author or The Ultimate Ponzi, a chronicle of… Continue Reading

Good Judgment Comes from Experience…

Posted in Ponzi Analysis

And experience comes from bad judgment. As news headlines attest every week, many people get burned by Ponzi schemes. There’s also an unwarranted assumption about victims of investment fraud: that they somehow deserved to get scammed, that they were stupid and greedy. Yet in a great number of cases, neither accusation is true. Let’s take… Continue Reading

Avoidance Actions against Investors in Ponzi Schemes: The Fundamentals Revisited

Posted in Bankruptcy Clawback News, Legal Representation, Ponzi Analysis

U.S. District Judge David Godbey’s 32-page Order allowing the Receiver in the R. Allen Stanford Receivership Estate to “clawback,” or recover, all back interest payments paid to Stanford investors is a worthy read as a remedial lesson in the character of Ponzi-based clawback actions. Court-appointed receivers often file lawsuits or clawback actions against investors who were… Continue Reading

Ponzi Schemes Harm Local Ethnic Communities

Posted in Bankruptcy Clawback News, Legal Representation, Ponzi Analysis

As investment frauds continue to make the news across American cities, a clear pattern emerges among a number of these scams. Ethnic communities are often the target of Ponzi schemers and form a key segment of affinity fraud victims. These groups can fall prey to scams due to the following factors: A smaller subsection of… Continue Reading

Affinity Fraud and Clawbacks: Lydia Cladek’s Ponzi Scheme

Posted in Bankruptcy Clawback News, Ponzi Analysis, Ponzi Profiles

The case of St. Augustine Ponzi schemer Lydia Cladek provides a clear example of how con-artists develop relationships with victims in order to steal their money. When the scheme eventually comes crashing down, friends, family and associates who had invested with the perpetrator can face nasty clawback lawsuits. After being found guilty of conspiracy and several… Continue Reading

Accused Ponzi Schemer Vincent Singh Was Provided a Federal Public Defender

Posted in Bankruptcy Clawback News, Legal Representation, Ponzi Analysis, Ponzi Profiles

On October 17th, the day after his arrest in Idaho, accused Ponzi schemer Vincent Thakur Singh was provided a federal public defender during his detention hearing. Singh has been indicted by a Federal Grand Jury in Sacramento for numerous counts of fraud – the detention hearing documents indicate that he will seek court-appointed counsel when… Continue Reading

Ponzi Schemes and Political Campaigns

Posted in Bankruptcy Clawback News, Ponzi Analysis, Ponzi Profiles

Since America is in the grip of election-season fever, it’s worth taking a look at some connections between investment fraud and the national political scene. Many Ponzi schemers are by their nature gregarious, flashy individuals whose moral compass doesn’t seem to function very well. Their actions are calculated to increase profit, power and pleasure, and… Continue Reading

Vincent Singh Ponzi Bankruptcy Tests Validity of Usury Claims in Clawback Litigation

Posted in Bankruptcy Clawback News, Legal Representation, Ponzi Analysis

Today at Forbes, attorney and top authority on investment fraud Jordan Maglich has delivered an excellent analysis on the use of lending laws in clawback suits. Maglich examines the recent employment of usury statutes by Court-Appointed Trustees to seize funds from investors in the wake of a Ponzi scheme’s bankruptcy. A trustee or receiver will… Continue Reading

Ponzi Schemes and Clawbacks: Defending the Victims, not the Perpetrators

Posted in Bankruptcy Clawback News, Legal Representation, Ponzi Analysis

This legal overview of Ponzi schemes and clawbacks was written by Michael Hackard for The Bella Institute in August 2012. See the original entry. Something’s been proliferating across America – something that has at times shaken investor confidence and at others made financial investors feel like there is a war against them. That which has… Continue Reading

Book Review: Preference Defense Handbook, The Circuits Compared

Posted in Book Reviews, Ponzi Analysis

Deborah L. Thorne, Preference Defense Handbook, The Circuits Compared, American Bankruptcy Institute (Alexandria, VA., 2010), 178 pp. (paper). Preference Defense Handbook is helpful for lawyers whose practices have expanded into defending preference avoidance actions in bankruptcy cases. The wake of economic hardship brought on by the Great Recession has made preference litigation far more common…. Continue Reading

Ponzi Scheme and Bankruptcy FAQ

Posted in Ponzi Analysis

  What is a Ponzi scheme? The Securities and Exchange Commission defines a Ponzi scheme as an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. In other words, it’s a business scam that robs Peter to pay Paul. Organizers of Ponzi schemes will pitch their… Continue Reading

Analyzing Ponzi Schemes

Posted in Ponzi Analysis

Collecting evidence on the major characteristics of Ponzi schemes is no easy task, since new cases of investment fraud are exposed on a weekly basis. In a recent report released by the business consulting firm Marquet International, 329 Ponzi schemes from 2002-2011 were collated and analyzed. Let’s examine some of the key points featured in… Continue Reading