I am often asked, "How many Ponzi schemes are there?"
This is a tough question to answer with 100% accuracy because there is no
central registry for all Ponzi scheme cases. The media certainly reports on the
big cases, and occasionally the smaller, local cases, but most schemes go
unreported as lawyers, accountants, trustees and receivers quietly unravel
The Securities Exchange Commission does respond to a
significant portion of Ponzi scheme cases - the ones that involve the
fraudulent sale of securities. Its website reports that since fiscal year 2010,
has brought more than 100 enforcement actions against nearly 200 individuals
and 250 entities for carrying out Ponzi schemes.
The website of the Commodity Futures Trading Commission
also has an extensive list of the enforcement actions that it has taken in
cases involving Ponzi schemes and other frauds. So far in 2013, it has
published 47 press releases regarding its new and pending enforcement actions.
Click here. (http://www.cftc.gov/PressRoom/PressReleases/EnforcementPressReleases/index.htm)
Monthly, this blog summarizes the stories relating to
Ponzi schemes that make the news around the globe. The reported stories include
newly discovered Ponzi schemes, guilty pleas and convictions relating to
previously discovered schemes, and the sentences that courts dole out to the
perpetrators. Those reported stories reflect these statistics for just the first four months of 2013:
These are staggering statistics, with no end in
sight. Anyone have any good ideas on how
to stop this onslaught?
Read additional articles at The Ponzi Scheme
Kathy Bazoian Phelps is the co-author of The Ponzi Book: A Legal
Resource for Unraveling Ponzi Schemes (LexisNexis 2012), along with
Hon. Steven Rhodes. The Ponzi Book, recently reviewed by the ABI Journal and Commercial
Crime International, is available for purchase at www.lexisnexis.com/ponzibook,
and more information about the book can be found at www.theponzibook.com.
Watch Kathy's interview on the The Not So Legal Show.
For more information about LexisNexis
products and solutions connect with us through our corporate site.