When you open a business, you’ll likely need investors to help you make your dreams a reality. However, working with investors can be complicated, as they’ll want to see a sizeable return on the funds they’ve extended. If this is not the case, an unhappy investor may make accusations that you are running a Ponzi scheme. Unfortunately, this can have considerable impacts on your life. The following blog explores these details further and explores the potential penalties you can face if convicted of this offense in Oklahoma. You’ll also learn how an Oklahoma City white-collar crime lawyer can assist you in crafting a defense.
What Is a Ponzi Scheme?
A Ponzi scheme is a type of investment fraud, and is often used interchangeably with the term “pyramid scheme.” A Ponzi scheme, which is named after an infamous Italian businessman, relies on investors making upfront payments with the promise of a greater return. However, the money that new investors pay simply goes to those who have invested before them.
These types of fraud require the organizer to make it appear as though they are running a legitimate business when no such one exists. However, because the organizer can use funds from new investors to pay others, it appears to be a real company with legitimate ventures. Eventually, when potential new investors become suspicious or refuse to invest funds, the scheme can collapse as prior investors won’t get a return on the funds they’ve given.
What Are the Potential Penalties?
If you are accused of running or promoting a Ponzi scheme or any other kind of investment fraud, the penalties can be severe. You will face a felony offense in Oklahoma, which carries up to 10 years in prison and fines of up to $10,000. However, you may also need to pay restitution to the wronged investors, which can vary based on how much money was involved in the scheme.
In addition to facing a general investment fraud offense, you can be charged with other white-collar crimes like wire, mail, or real estate fraud, which all carry their own penalties.
What Defenses Can I Utilize?
In order to convict you, the prosecutor assigned to your case must prove intent. If you can show that you did not intend to defraud anyone and were operating your company under what you truly believed to be honest terms, you may be able to avoid a conviction. Unfortunately, an investor may try to accuse you of running a Ponzi scheme simply because they are unhappy with the outcome of their investment decision. As such, it’s imperative to connect with an experienced white-collar crime defense attorney from the Jones Firm, PLLC.
A false accusation of fraud from an unhappy investor can ruin your reputation and result in criminal charges, so it’s crucial to take the necessary steps to protect yourself during these complicated matters. Our team will do everything in our power to help guide you through these matters and defend you every step of the way. Contact the Jones Firm, PLLC today to learn how we can fight for you.
