Extent of Investment Fraud

Regulators continue to report investment fraud involving retirement accounts such as IRAs and Solo 401k plans, which is not surprising considering retirement assets totaled over $18.9 trillion as of early 2012.

At least 150 Ponzi schemes were dissolved by regulators in 2009 amounting to more than $16.5 billion in losses.

The number of restraining orders against Ponzi schemes have steadily increased since 2010, and the SEC has seeing their enforcement work load increase from 9% in 2005 to double digits in recent years. The SEC reports that it has brought more than 100 enforcement actions against 200 individuals and 250 companies for their involvement in Ponzi schemes.

The following number of Ponzi scheme enforcement actions has been reported on the following SEC

Website: http://www.sec.gov/spotlight/enf-actions-ponzi.shtml

Year 2010: 14 Enforcement actions against Ponzi schemes

Year 2011: 16 Enforcement actions against Ponzi schemes

Year 2012: 13 Enforcement actions against Ponzi schemes

“The FBI opened more than 2,100 securities fraud investigations in 2009, up from 1,750 in 2008. The FBI also had 651 agents working in 2009 on high-yield investment fraud cases, which include Ponzi’s, compared with 429 last year.” See: http://www.law.com/jsp/article.jsp?id=1202437299784

Additional Information

Targets of Investment Fraud

Reasons Solo 401k Plans are Targets of Fraud

Techniques Used by Fraudsters

Tips for Avoiding Fraud

 

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