Wednesday, 9 January 2013

Don't Be a Victim of a Ponzi Scheme
Banking and Securities Regulatory Compliance
"Ponzi Scheme Architecture and Pitfalls"
October 24rth 2012

Ponzi Schemes have proliferated and have caused widespread damage to capital markets and in wiping out investor wealth. Just south of the border in the US, in 2008, we saw Bernie Madoff who committed the largest financial fraud in history -- bilking investors for over $60B, and sentenced to life in prison.

And these schemes are also taking place in Canada, where regulatory enforcement has been criticized as weak and lacks resources to sufficiently deal with it. We saw the episode with Vincent Lacqroix, right here in Montreal, who defrauded investors for over $40M. The common theme of investor trust and vulnerability is pervasive in these sophisticated schemes.