Pyramid Schemes Solicitors in London

Updated on Friday 28th June 2019

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Investment frauds are discovered on a daily basis everywhere in the world and are the type of crimes which lead to financial loses in a large percent. Pyramid schemes are illegal in UK and persons or companies involved in such crimes will have to ask for immediate legal advice from our criminal defence solicitors in London. We strongly recommend you talk to one of our pyramid schemes solicitors in London and find out more about the support we can provide for such severe accusations.

Types of pyramid schemes

The concept of a pyramid scheme often involves different organizations that convince companies or entrepreneurs to make investments and payments in exchange for a share of the money invested by every new member they enlist. The top of the pyramid is formed of managers and directors of the organizations that begin the investment scheme from which they receive a portion of the payments made. Here are some details about the pyramid schemes and related frauds, mentioning that our criminal solicitors in London can offer legal support for investment fraud accusations:
  • the only revenues in a pyramid scheme are from entrepreneurs convinced to make payments;
  • the exponential growth stands at the base of the pyramid scheme;
  • the expansion of the pyramid can be unlimited and each level is bigger than the previous one;
  • when the scheme is out of investors, the pyramid will definitely a breakdown.
There are also varied pyramid schemes that can make an investor decide on different payments in exchange for huge returns:
  1. The matrix scheme – the members will join a waiting list for obtaining a specific product. They are invited to buy an expensive product which is normally worthless.
  2. The 8-ball scheme - each individual must recruit two persons who then need to enroll others two each and pay a specific sum of money.
The individual found on the top of the pyramid receives all the money and then can leave the scheme and re-join it as a brand-new recruit. Such investment frauds might not be detected in time and impostors can rapidly make money, leave the scheme and start a new one. If you have been accused of investment fraud, you can get I touch with our pyramid schemes solicitors in London and ask for complete legal advice. Such accusations are extremely severe, and persons found guilty of investment frauds can face long-time imprisonment. Let our team of criminal defence lawyers in London tell you more about the legal representation we can provide for you.

What is a Ponzi scheme?

One of the most met types of investment fraud is the Ponzi Scheme which was used for the first time back in the ‘20s by an American businessman named Charles Ponzi. Today, the investment fraud scheme respects pretty much the same illegal rules and involves small, medium and large companies which are suggested to invest a specific sum of money with the promise of huge profits from specific assets or product sale. In most cases, this is only a false business promise and that because the investors will not see any profits in return. A Ponzi Scheme often involves a small and inexperienced type of investors who believe they have the chance to make easy money without considering the risks and the fact that an investment fraud might happen. The accusations of fraud are extremely serious, and if you are involved in such allegations, we strongly recommend you talk to our pyramid schemes solicitors in London.

What happens if a pyramid scheme fails?

Because there is no end benefit in a pyramid scheme, there are 100% chances for the structure to collapse. This is a situation in which the investors discover they have been fouled and their money was taken. The prosecution will have to prove that this is an investment fraud and dishonesty offence for which fraudsters will have to respond in front of the authorities. In the case of victims of investment fraud, these persons will have to prove they acted in a correct manner when the money transaction took place, without for them to know that it was all a serious fraud. As a short overview of the investment frauds in UK, the following numbers reveal the situation for 2018:
  • around GBP 845 million were involved in unauthorized financial frauds in UK;
  • more than GBP 1,66 billion were protected by banks against investment frauds;
  • there have been more than 84,000 reported payment scams;
  • approximately 56% represents the financial loses with payment cards in 2018.
If you have been a victim of pyramid scheme frauds in UK, you are recommended to contact our team of criminal defence solicitors in London and ask for immediate legal advice.