Certified fraud examiners at Resolute Commercial Services anticipate increased focus on and discovery of Ponzi schemes during the remainder of 2021.
“Ponzi schemes thrive when the economy is doing well and people have extra cash to spend,” says Nicole Manos, senior managing director at Resolute and one of the top forensic accountants in Arizona. “It’s after a year like 2020, when the economy takes a dip and people become more careful about how they spend their money, that we see Ponzi schemes begin to be uncovered.”
By definition, Ponzi schemes use money from new investors to pay earlier investors. This can continue for years, until the scheme becomes unsustainable because new investors can’t be found or too many investors ask for their money back at the same time.
Many financially successful business owners and individuals become targets of Ponzi schemes because they…