Reporting a Ponzi Scheme: Protect Yourself & Others

Image of the FBI building.

A Ponzi scheme is a form of investment fraud in which companies pay out fake returns to old investors using the investments of new investors. No actual investments are actually made and the scheme depends on a continuous supply of new investments. The scam becomes apparent when investments dry up and the company can no longer pay out returns. If you believe that an investment is actually a Ponzi scheme, you can report it to the FBI and the Securities and Exchange Commission.

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Who to Contact

Operating a Ponzi scheme is a criminal offense and you can report it to the FBI. You can submit a tip to the FBI tips website (tips.fbi.gov). You can submit your tip anonymously or you can include you name and contact number so FBI agents can contact you for more information if needed. You can also report a Ponzi scheme to the FBI by phone at 1-800-225-5324 or call the closest FBI office.

Ponzi schemes also run afoul of SEC regulations. You can file a complaint using the SEC complaint website (sec.gov/complaint/tipscomplaint.shtml). Alternatively, you can complete form Form-TCR -- available on the SEC website -- and mail it to Office of the Whistleblower, SEC, 100 F Street, NE, Mail Stop 5971, Washington, DC 20549 or fax it to (703) 813-9322.