White-collar crimes refer to a number of different offenses. Some include bribery, pyramid schemes, insurance fraud and identity theft. Of course, there are many other crimes as well that fall under this umbrella term.
White-collar crimes are non-violent offenses. They are typically committed for financial or personal gain. Essentially, a person cheats, steals and lies to get what he or she wants, whether it’s money, assets or something else entirely.
One of the white-collar crimes you could be accused of is a Ponzi scheme. This scheme is performed by creating a fraudulent investment business. Once it’s created, investors begin to invest their real money into fake stocks. As the operation grows, the money taken from each new investor may be used to pay back another if he or she decides to take a payout of his or her investments and their growth. The goal of the scheme is to never let anyone cash out, because there would not be enough money if all people wanted to recover their investments at once.
Ponzi schemes happen often, and, similarly to pyramid schemes, they never end well. Those who start the schemes end up wealthy, but those who are investing toward the end of the scheme end up losing everything. The problem with a pyramid or Ponzi scheme is that investors eventually run out, so no new people are investing into the fraud.
If you’re accused of operating a Ponzi scheme, it’s extremely important to protect yourself and your reputation. Your attorney can help you build a strong defense, so you are treated fairly. Our site has more on the importance of a strong defense.