What is a Ponzi scheme? The dictionary defines a Ponzi scheme as:
"a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors".
Once Zach Horowitz got those first investors on board, all family and friends, promising returns of 42% after 9 months (a red flag if I've ever seen one), he would repay the initial investors with money coming in from new investors. I'm always bewildered that people think there are investments that pay 42%, or more, in a short period of time with no risk. In the end over $600 million was scammed in this Ponzi scheme with some $200 million still unaccounted for.
Don't think that schemes such as these are ongoing here in Colorado? Don't be too sure. In the last three weeks I've been introduced to individuals, who didn't know my background, pitching investments that are too good to be true and will, ultimately, lead to loss of investment funds. In both instances I gathered as much information as I could about the principles and shared with a local detective I know so that she could be on the lookout for potential victims.
If someone approaches you with an investment that just seems too good to be true, contact me or one of my investigators and let us conduct due diligence on your behalf.
Lee Walters
President
EXCALIBUR Private Investigation
719.208.4088; 505.208.6400; 803.806.7800