How a Ponzi Scheme Can Threaten Your Assets

For over one hundred years, Ponzi schemes have existed as a way to generate money from investors looking for high returns at a low risk. Operating or even being accused of running a Ponzi scheme in Ontario can have serious legal ramifications, from imprisonment and fines to financial restitution and repayment orders. Homes, savings, investments, and even future earnings can be at risk if you are convicted or found liable. If you've been accused or charged with fraud related to a Ponzi scheme, contact a skilled fraud lawyer at Karrass Law to book a legal consultation and start building your defence. As experienced civil litigation lawyers and criminal defence lawyers, the Karrass Law team is equipped with the expertise to advocate for you and to help you protect your assets. 

Here are some insights into how a Ponzi scheme can threaten your assets. 

What Assets Are at Risk with Fraud Conviction?

If you are convicted of fraud for running or being involved in a Ponzi scheme, assets like your homes, savings, investments, and even future earnings can all be at risk.

• Your Personal Savings and Bank Accounts: If you're implicated in a Ponzi scheme, authorities may freeze or seize funds from your personal bank accounts. This can happen even before a trial begins. Under Ontario law, the Crown can issue restraint orders to preserve funds for potential victim restitution. To protect your assets or find out if your personal savings and bank accounts are affected by criminal fraud charges or a civil lawsuit, book a legal consultation with our civil and criminal defence lawyers at Karrass Law. 
• Real Estate and Property: If you own a home, rental property, or land, they can be seized under proceeds of crime legislation. If the Crown believes your property was acquired, even partially, using fraudulent funds, it may be forfeited, even if your spouse or family co-owns the property. Working with a reputable civil litigation lawyer can help you protect your assets and preserve your family's assets.  
• Business Holdings and Company Accounts: If you operate a business that was used to facilitate a Ponzi scheme, whether that was intentional or not, any assets associated with the company can be seized or frozen. Assets affected could include computers, vehicles, inventory and incoming payments. 
• Retirement Funds and Investment Portfolios: RRSPs, TFSAs, mutual funds, and stock accounts are also fair game. Ontario courts do not exempt these from restitution orders, and the value of your investment portfolio could be liquidated to repay victims.
• Future Income and Employment Wages: Even your future income can be garnished through civil judgments. This includes salaries, contractor payments, and even pension benefits. A civil litigation lawyer at Karrass Law can help negotiate payment terms or dispute the amount claimed to get you the best results possible. 

Civil vs Criminal Fraud Charges for Ponzi Schemes

When you're charged and convicted of fraud over $5,000 for running or being involved in a Ponzi scheme, potential penalties go beyond repayment or restitution and frozen assets; you may also be sentenced to up to 14 years in prison. If the total fraud exceeds 1 million Canadian dollars, then there is a mandatory minimum sentence of up to 2 years. For a strong and effective legal defence when facing criminal charges, you must book a lawyer consultation with a reputable and determined criminal defence lawyer in Toronto.

Even if criminal charges are not laid or are dropped, investors may still file a civil lawsuit to sue for damages. Plaintiffs in civil fraud lawsuits often claim breach of trust, negligent misrepresentation, and unjust enrichment. A civil litigation lawyer at Karrass Law will be key to defending your interests and responding effectively to lawsuits.

Protect Your Assets with Karrass Law

If you're facing fraud allegations related to a Ponzi scheme, the most important step is to consult with a fraud lawyer immediately. Avoid speaking to investigators or law enforcement without legal representation. As seasoned criminal defence lawyers and civil litigation lawyers, Robert Karrass and the Karrass Law team will help protect your rights during questioning and begin preparing for any potential lawsuits or settlement negotiations to protect your financial interests, loved ones, and personal interests. 

Our team has a proven track record for getting our customers the best results possible in every case. With dedicated lawyers and legal experts ready to advocate for you, contact Karrass Law today to book your complimentary lawyer consultation. 

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