Investor Fraud- How to Identify a Ponzi Scheme

This series of three items how-to guide to the identification and prevention of men, Ponzi, and some basic systems, you can for the customers and members of the family, the victims of financial fraud.

I'm in the negotiation and intellectual property lawyer based in Seattle, Washington. In my presentation of companies and individuals that he had problems and debunked more than with men. Today, the seller of snake oil pedaling fast systems. Some had been CEO of fraud by its own shareholders, Ponzi schemes, while others were obtained amoral individuals is less complex and ambitious, a fraud trials.

This first of three articles to be treated like the victims in mind that the victims again with reality, so that the participants in their own rehabilitation, and what the man was wrong with them to the courts. The second of three articles on the identification of an architect - the man behind the confidence of investors in the fraud. The third in this series of articles, the Tripartite question the people who are Ponzi schemes, and their victims is a case study from the real world of today in a financial fraud action with their victims and their lawyers to take the floor. It gives you a first row of seats, active and continuously with the analysis and presentation and debunking of the cage and the man behind her. It really is the best way for you, the reader, with a vision of how it is structured and executed. The question is appropriate, because the context of Wall Street Ponzi schemes, such as an epic author Bernard Madoff, Allen Stanford and stroke.

Let us begin, then with an overview of the manner in which a lifeboat for the customers, relatives or friends who are in the maelstrom of a financial fraud in progress. The current global economic recession is the breeding ground for men and financial fraud. Economy increasingly difficult to increase the diets Ponzi. People desperate for a quick solution, are more susceptible to the mother with the people of this vulnerability by providing false, plans to quickly rich. With the epidemic, the number of financial problems in the game today in our society, it is important to focus on assistance to the victims of Ponzi schemes.

Here is the biggest challenge: simply the victim of a Ponzi to recognize and accept that he is a victim. Apparently, contrary to what would be a challenge, but believe me it is. To understand why it is indeed the crux of assistance to the victims of financial fraud, is the psychology on which the stage. That is the mentality that they are against anyone believe they were deceived or Outsmarted, especially when it comes to money. It is a shame. We are a culture, but unfair and superficial, in which the personal and professional success monétisée. The winners and losers are often distinguished by the size of their bank accounts. This is especially true in business, within the territory where such Ponzi schemes. Another psychological barrier for recognition, which have been taken: to accept that the investor is a victim of fraud necessarily accepting the loss of currency at a time when it bitter medicine. Agony that this form of monetary loss on the pain to see the result of a Outsmarted, cheated and stolen, in the mirror: What is this evil person is faced with the prospect of the same reflection in the eyes of those they love .

The biggest challenge now is to bind the victim's financial fraud is that the victim and a participant in a Ponzi now with all personal and professional can. Sits on a sacrifice by his lawyer and tell him to cut ties with a man is rarely sufficient or effective if it is followed by a thorough investigation and documentation of the Ponzi scheme and with the people.

If the man on the front of the background art, was often a literal interpretation of brainwashing, which deals with their "brand". Logic, not in the formula, which is almost impossible for the victims a sense of logic, since it has long been fatally compromised. . . with the victim of a bank account. The men are masters of social engineering, of deception, manipulation, psychological and emotional. Depending on the depth of the victim was in the context of their conception of the relationship differs significantly from the objective, outside of the person who has not been altered.

For the posting of a deterioration of reality, the investor is also a victim of its own lies. After leaving with their money, the victim has an interest in the success of a Ponzi and works hard - to their disadvantage - in order to convince the company, the legitimacy and the legitimacy of the architect.

The big challenge for the evil to defeat is very similar, which is strictly managed by the former members of the cult to help them reintegrate into the family and the reality. So that is a victim of illusion, to think and Svengali for the confidence man, a kind of intervention is usually necessary, not in the technique in the treatment of alcohol and drug addiction problems. In this case, the aim is impersonal, methodical, but also often broken down as a drug addict to recognize their demons.

Usually what is necessary for the delivery is a detailed investigation and documentation to the people and its history and present defraud, as well as a thorough and systematic dissection of financial fraud. Based on the facts and an extensive documentation, the mark can only be effective face and forced the existence of a system of Ponzi and accept that a victim, that the continuation of participation than in most damage-dependent and self-partner .

If man is not necessarily a criminal - or even a history of civil looted from investors. This makes it essential to include a study to review the history of man and with all key partners in financial fraud. It is also necessary, and a systematic breakdown of the model used - for investment of the company's Trap for protecting trademarks. Depending on the complexity of the construction of this preparatory work can often take months, by professionals: the juricomptables, lawyers and analysts as a transaction.

Apt analogy would be the continuation of a man for murder. It is rare that a gun may have to smoke, the jury of twelve men and women. Like most murders are solved, and the condemnation by the maintenance of the collection, treatment and presentation of circumstantial evidence to convince jury of the guilt of the accused, the circumstantial evidence is often the only way to prove a financial contribution.

These tests are presented below, in a formal framework of the brand outside the comfort zone. An accountant, a lawyer or an office of financial planners can contribute to this purpose. The material must be in a quiet but aggressive on the victim to the reservoir for the distortion of thinking, reasoning and the problems of reality changed eingeflößt and cultures of people to maintain the fraud. In sum, the aim is to return to the victims of facts and logic. To your critical mind. To the brand names in the toolbox needed to create awareness of their situation and the exploitation of man.

Financial fraud takes many different forms, from the Wall Street heist Bernard Madoff so harmless multilevel fraud. Regardless of the group more in common than differences, which of these systems quickly. In future articles, I will study both.