Fairfax Virginia Pyramid and Ponzi scheme Laws

In Fairfax Virginia, an Endless chain is another name of the pyramid scheme. This scheme applies when someone offers you to become rich quickly by their fraudulent business. This type of person attracts you with fake things, you give a specific amount to that person and also ask your friends, relatives and family members to do the same thing and become rich fast. They engage you to get more people to join that business and it will continue just like a chain. The problem is, beginning when you will find anybody to join and when the chain will stop you cannot earn any income from it. In this situation, every person in the chain will be losses, expect that person who is on the top of that chain because he or she has stolen the money of every person.

Ponzi scheme:

It is a variation of pyramid scam but there is a minor difference between these two terms. In this scheme, the fraud person will ask another person just to invest the money instead of asking the people to join and make a chain.

But in this case, the fraud person no pays the profit to the investor on its actual investment infects he or she will give them a specific amount as cash that is taken by him from a new investor. Everyone losses again, when he runs out of a new investor.

There are some important schemes of Ponzi scheme that are as follow.

  • Fraud of real estate
  • Fraud of mailing
  • Fraud of wiring
  • Fraud of commodities
  • Fraud of lottery
  • Fraud of securities

Pyramid and Ponzi Scheme Laws are very strict in Virginia that will help people to save themselves from this type of frauds or from losing their money.

Penalty For These Frauds:

According to the Pyramid and Ponzi Scheme Laws, there can be different plenty. In a pyramid scheme, any person expects fraud person who asks any other person to participate and join the chain will be equally liable for the damages or losses. Into the pyramid scheme, the time period will bring the case to the 5 years from the particular date of the payment. The fraud person may also ask to return the amount of all people who are including in that chain. It will help the other people to lose their money.

How To Identify The Signs Of That Schemes?

In Fairfax Virginia there are some laws preventing this type of scams but how can you know that you are the victim of these scams. There are some signs that will help you to know more about it.

  • The fraud person may ask you to purchase different things and invest a huge amount of an ordinary thing
  • The income can be based on joining the number of people to make a chain
  • The company may ask you to invest money as much as you can and get profit

Where Can You File A Complaint?

If you think that you are a victim of this scheme you can hire an attorney and discuss all the situation with your lawyer or you can directly report to a police station against the fraud person.