What is a high-yield investment program?

On Behalf of | Mar 2, 2022 | Fraud

A high-yield investment program is supposed to bring high returns to New York investors. However, it is a classic Ponzi scheme in which no real investments are made, and the scammers walk away with their victims’ money without doing any work. There are few to no gains to receive after investing in a high-yield investment program.

What a high-yield investment program is

A high-yield investment program is a fraudulent scheme that promises more than 100% of returns on investments. This sounds similar to a legitimate high-yield bond investment that offers high-interest rates for greater risks.

A high-yield investment program works using a Ponzi scheme. The new investors make payments that are sent as returns to the older investors. No investments are made for anyone, so no genuine returns are gained. The so-called returns are simply paid by the investors themselves.

The available legal options

Hiring a lawyer makes it easier to recover the full costs of financial fraud that were lost through a high-yield investment program. Police officers, detectives and lawyers may find an interconnected network of scams that lead to the identities of suspects. It’s easy to lose an excess of $10,000 in investment scams, but it’s impossible to recover that money on one’s own. The chances of recovering your money are higher after entering into a legal process.

What your next options are

The unfortunate truth about high-yield investment programs is that anyone can invest in them. It often is years of scamming and tens of thousands of dollars in lost money before the programs are brought to the attention of law enforcement. There are law firms that are designed to compensate victims of financial fraud.