South West Ponzi Scheme – July 2021 Update

As an adult everyone should take serious care about their finances. It is no secret that inflation robs us in a passive aggressive manner and investing is the key to the riches. However, one should not pursue this endeavour lightly because the risks are enormous and it is possible to lose more than you have invested. South West Ponzi Scheme is the latest scam that made many investors shiver and we have covered every aspect of this incident in the following paragraphs.

Though this event was awful to say the least, it reminds us about the precautionary steps one needs to take in order to safeguard their interests. The plight of the victims are unbearable and needless to say, many people lost more than just money.

From people who are about to get retired to teenagers, the age range of the victims is huge and it shows how vulnerable people are in this space. As of now, allegations are there, but no conclusion can be derived yet. So, keep an open mind.

Nonetheless, there are few telltale signs you need to look out for. Financial education is of paramount importance and anyone above the age of 18 just cannot afford to sail through life without it. Also, if you have lost money to this scam, then stay with us till the end because we will give you a few actionable plans that you can use to retrieve stolen funds.

Keep in mind that there are no guarantees being made and our main goal is to help raise awareness.

South West Ponzi Scheme

What is a Ponzi scheme?

We do not want to bore you to death by mentioning the brief history of ponzi schemes as it can be found with a few clicks on the internet. Nonetheless, we do want to explain the main characteristics of the ponzi operational model in order to give you a clear understanding about how this illegal model works.

It is no secret that every business needs to generate cash flow to sustain itself. Few businesses such as Uber, Ola burn through cash in the initial phase to gain market share and then slowly turn profitable. Businesses that burn cash are obviously expensive and it needs proper funding from the investors to achieve success.

On the other hand, other ones work by keeping decent profit margins. Ponzi schemes do not have any real source of revenue. People behind this type of fraud might use fancy narratives, but in reality the cash flow is only brought in by the new recruits. Masterminds just skim something on top from the cash brought in by the new participant and use the funds to pay the old clients.

This type of business model is not sustainable and eventually they are bound to collapse. As you can clearly see, due to the way this hustle works, around 95% of the participants will always lose money and only the ones at the top will end up with positive ROI.

South West Ponzi Scheme Incident Explained

Former South West accountant is currently facing allegations of running a ponzi scheme. The name and other details of the person involved could not be found on the internet for obvious reasons.

Get in touch with our affiliated Cryptocurrency Forensic Specialists at CNC Intelligence for free by filling out the form below.

    However, the affected people who lost hundreds of thousands of dollars are voicing their opinion and that is why we are making this post to keep people informed. While the end result is unclear, there are few things the public has to learn from this incident and they are covered in the next section. 

    Precautionary Steps

    Hopefully, you have understood the inherent flaw present in the ponzi operational model by now. The South West Ponzi Scheme may have followed the exact blueprint and that is why you need to learn the patterns so that you can spot when things are fishy.

    Note that from time to time, execution style and other elements might get a new form, but the underlying pattern will always be the same.

    Consult a Licensed Financial Planner

    Before touching your investment account or retirement account, it is always a good thing to consult a licensed financial planner. Professionals have clear understanding about the probability ratios and risk measurement and it enables them to make much better informed decisions. We are not saying that a financial planner will always help you make the right decisions.

    However, they do help put things into perspective and they know the metrics of the market very well. Also, to maintain a balanced portfolio, help of experts is always needed. Things like derivatives and leveraged instruments can amplify returns, but if it is left unhedged, then it will not be a good thing. 

    Talk with Multiple firms and agencies

    In the paragraph above, we have covered why individuals have to consult financial planners before taking big positions or buying risky assets. If you are familiar with the financial sector, then chances are you already know that everyone has different opinions about the markets.

    So, to get a clear picture talking with more than one person or entity is a desirable trait. Perspective and goals of financial planners depend upon a lot of factors. Ultimately, it also correlates a lot with the goals of the clients as well.

    So, state your objectives, let them know the time frame you are aiming for and talk with at least a couple of professionals and then take a call. After all, this is a big factor that has numerous complications which means slow and steady is the best approach to take.

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    Never take too much risk

    Risk management is the ultimate thing one needs to master in order to get the best returns in the market. Derivatives markets were mainly invented to mitigate risks and if used correctly, it can work miracles for you. Sadly, most people do not know the way these fancy instruments work and they might end up exposing themselves to a lot of unnecessary dangers.

    Do not get involved with any instrument without having an exit plan. If you do not know the ways of managing the downward swings, then the best thing to do would be to not get involved with it. Also, never invest too much money on one particular stock. 

    Analyse the Track Record

    If you are having a tough time in finding the perfect planner to achieve your goals, ask them for their performance reports. A lot of reputable planners will be more than willing to share the details with potential clients and they will openly discuss their numbers.

    Past performance does not guarantee future returns. Nonetheless, it is a very good way of getting to know what to expect from a particular planner. As a rule of thumb, anyone that has more than 50% win ratio should be ideal. 

    Plight of the victims of South West Ponzi Scheme

    Coverage regarding the actual victims of this alleged fraud is hard to come across on the internet. We searched the web for a long time and we could not find any firsthand information about the way the users felt. Of course, on a couple of press sites, clippings were published and it goes without mentioning that the users were frightened and frustrated at the same time.

    The main problem is that no one clearly knows the protocols and whenever money is involved, tension will always be present at some level. The South West Ponzi Scheme will eventually leave behind a trial of angry testimonials, but until more users talk about the incident on the web, we just have to wait.

    No niche related forums cover this incident yet and as this type of event is truly rare, if you want latest updates about this case, then regularly visit our site and we will keep you informed. 

    Have you lost funds to the South West Ponzi Scheme?

    Losing money to any kind of fraudulent scheme is heartbreaking. People will get affected both mentally and financially. Though we cannot do anything about the past, it does pay to be proactive in situations like this. As soon as you have detected any kind of fraud, always look for ways of making the criminals pay.

    For starters, take a look at things like chargebacks, wire recalls, etc,. Note that the methods mentioned above are not applicable to this case. We are just trying to give you a rough picture about the options available at your disposal. For best results, we recommend you to use the contact form below to get in touch with our recovery experts.

    Our team has tremendous unparalleled experience in this space. We will not only help you locate your funds, but handle everything associated with the recovery process. To know your real chances of retrieving the money, sign up for a free consultation. Note that all of our services are free. 

    South West Ponzi Scheme Bottom Line

    The South West Ponzi Scheme caught a lot of people off guard. The allegations are severe and until a definite end is seen, hope for the best and prepare for the worst. From now on, if you are starting any new venture that requires a lot of capital, follow the practises mentioned above.

    Also, never invest in any offer that sounds too good to be true. Always make sure that you fully understand the products you are indulging with and for smooth execution and to avoid liquidity problems, deal with regulated exchanges and firms only. 

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