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Nanban Ponzi Scheme Lawsuits

InvestmentsNumerous complaints and suspicious trading actions have led the U.S. Securities and Exchange Commission (“SEC”) to take action against Nanban Ventures (“Nanban”). This firm is at the center of a growing controversy that alleges a Nanban Ponzi scheme has been targeting South Asian and Indian communities. Amidst the allegations, Nanban continues to insist that it adhered to the highest legal and ethical standards in its activities.

Many who consider themselves victims of a Nanban Ponzi scheme are preparing to stage lawsuits against the firm. If you’re an investor who feels that Nanban has defrauded you in a Ponzi scheme, the sooner you reach out to an investment fraud lawyer, the better. The law firm of Console & Associates, P.C. stands ready to assess your case and help you in your pursuit of justice, just fill out our contact form or call 866-778-5500 to schedule a free consultation.

The History of the Alleged Nanban Ponzi Scheme

Hindenburg Research was the first to shed light on the alleged Nanban scheme. The firm’s research revealed a series of red flags, suspicious patterns, and other issues that strongly pointed to criminal behavior. Reportedly, Nanban consistently produced fraudulent account statements and reports to mislead investors and obscure the actual status of the company.

Hindenburg Research’s findings indicate that Nanban kept the lie going by using new investors’ money to pay off early investors, sustaining the company’s illusion of profit and success. Individual investors report that the firm’s representatives would aggressively urge them to reinvest their earnings, which supports the other findings indicating that Nanban is a Ponzi scheme.

Altogether, Nanban’s initial success at keeping investors’ money trapped within its system helped it evade detection by regulatory authorities and investors. This reinforced its public trust, drawing in new investors, and repeating the process. When Nanban’s fraud came to light, many investors found that their investments had essentially vanished overnight. In light of these events, they’re turning to legal aid to recoup their losses from Nanban Ventures and liable third parties.

Know your legal options.

Liable Third Parties in Nanban Ponzi Scheme

While Nanban Ventures and its leaders are liable for the scheme, they’re not the only ones that may face legal action. Third parties who facilitated the scam knowingly or unknowingly can be liable for failing to perform their due diligence and losing their clients’ money in the process.

  • Founders, management, and operators
  • Sales agents and promoters
  • Financial advisors
  • Custodian banks
  • Fintech companies, payment processors, etc.
  • Other third party entitites

So far, the SEC has obtained emergency relief against multiple defendants in the case, including:

  • Nanban Ventures and its founders;
  • GSM Eternal LLC (Northstars Fintech);
  • Himalayan Fintech, LLC; and
  • Centum Fintech.

There’s precedent for third party companies being liable in a fraud case. This could happen in the Nanban ponzi scheme lawsuit, although it hasn’t come to pass yet. The above companies only appear to be third parties, according to reports, and are actually under the control of the Nanban Ventures founders.

Damages Available in a Nanban Ponzi Scheme Lawsuit

No Fee PromiseThe most important damages available in a ponzi scheme lawsuit involve the recovery of the principle investment. This “makes them whole,” by restoring their losses. If the scheme has sufficient assets and if asset recovery efforts are successful, they may also receive part or all of the interest and profits that the scheme claims to offer them. It may even be able to receive payment for lawyers’ fees and tax-related losses tied in with the scheme. Victims may also pursue civil litigation, where they can seek damages for their time and emotional hardship.

However, it can be difficult to recover damages in a Ponzi scheme, due to the vast number of victims and the limited remaining assets to go around. That’s why you need to reach out to a proven team of Ponzi scheme lawyers as soon as possible. Call the law firm of Console & Associates, P.C. today at 866-778-5500 or fill out our contact form to get a proven team of skilled lawyers on your side.

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