Private Law Theory

INTRODUCTION
The basic nature of a Ponzi scheme is widely known and understood. The operator of a Ponzi scheme invites investments on the promise of unusually high rewards of some kind, whether in the form of interest, dividends, profits, or returns in some other form. The scheme is fraudulent in the sense that the high rewards are said to be generated by a business or scheme which either may not exist or is most unlikely to generate resources able to financially support such rewards to investors. In fact, the rewards are paid by the Ponzi operator with assets invested by subsequent investors. In due course, when the supply of further investors runs dry, the scheme collapses … (more)

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John McCamus, ‘Restitutionary Remedies in the Context of Ponzi Schemes: A Commonwealth Perspective’, 3 Stetson Business Law Review 1 (2024).