Labor & Employment Law

Investors left out in the cold by Ponzi Schemes

By Dobin & Jenks

Why should investors have to wait so long to find justice after losing large amounts of dollars in Ponzi Schemes like Bernie Madoff or Michael Riolo? According to a recent Sun Sentinel article on South Florida investors hurt in Ponzi schemes by Vanessa Blum, the search for assets is a major stumbling block. Other reasons include, the slow pace of litigation, and the heavy workload of law enforcement. One puzzling question for most is why should investors that have lost large amounts of money only recoup pennies on the dollar for these flagrant ponzi schemes? Attorney Marc Dobin lends an explanation in the article by adding " The problem for the investor is that usually the money is gone and all that's left are the toys that the fraudster accumulated."

According to the receiver, Alan Goldberg, the Riolo ponzi scheme took in at least $20 million from investors, which was mostly used to support a lavish lifestyle for Michael Riolo. Unfortunately, there is little left of value apart from a home valued at $1.2 million and about $200,000 in assets.

Investors must be extra cautious in today's market of investing. What can an investor do if they feel they are a victim of a Stockbroker fraud or a Ponzi scheme? Contact an experienced attorney to discuss their rights and what strategies are available to recoup their losses.

Full post as published by The Law Planet Blog on April 13, 2009 (boomark / email).