Investment Attorneys Helping You Obtain Legal Recourse If You Lost Money in a Pyramid Scheme

If it sounds “too good to be true,” it usually is

The basic truth of any pyramid scheme is that some money is made — for the person or few people at the very top of the scam. The Frankowski Firm protects the rights of investors who were harmed by an act of securities fraud. If you sustained financial losses because your broker, advisor or brokerage was involved in a pyramid scheme, we can protect your rights.

What is pyramid scheme?

Named after its top-down profit framework, the pyramid scheme is usually originated by an individual or small group of individuals who work to initiate novices into their organization, after a compulsory financial buy-in. Each novice in turn is required to conscript new members in order to see any return on their financial investment.

These contrivances can be enormously appealing to naive investors due to the high promises of financial returns with a minimum amount of effort expended. In a pyramid scheme, no legitimate product is ever sold to the general public, and the only revenue stream comes via recruitment. Even savvy business people have been known to be taken in by suave presentations designed to disguise the true nature of the investment project. Our lawyers are experienced in unwinding the evidence and aiding clients who have lost money to regain their resources.

Do pyramid schemes work?

Investors may see a small or initial return but pyramid schemes by and large do not work. To achieve any sort of return, an individual must recruit new members to the pyramid scheme. The constant need to recruit new members to further the investment is a non-sustainable system. Very quickly the pool of potential recruits dry up and the investor will not be able to see a profit or break even. While the original perpetrators of the scheme at the top of the pyramid will normally profit off the recruitment of the average investor, the base of the pyramid becomes smaller. Once the pyramid collapses under its own weight, the investors might not be able to recover any of their investment without the aid of experienced legal counsel.

When investors are deceived, the Frankowski Firm is here to help

Investment is always a risky proposition. The vagaries of the market mean that losing money is a reality. However, when those losses come not from market forces but from the deliberate and illegal actions of a broker, advisor or investment firm, we work on behalf of our clients to gain restitution to the fullest extent of the law. Call Richard Frankowski and The Frankowski Firm at 888-741-7503 or complete our contact form to discuss your options for recourse.