Raines Feldman Partner Kathy Bazoian Phelps was quoted by CNN Business in an article about Zachary Horwitz’s Ponzi scheme after he was sentenced to 20 years for bilking investors out of $650 million by peddling bogus licensing deals with HBO and Netflix.
Although Ponzi schemes have a long history, they are far from a bygone threat, experts say. In fact, they remain a major risk to investors in an era of soaring stock markets and wild surges in newfangled assets like NFTs and cryptocurrency. “Fraudsters really feed on times of uncertainty, financial distress, upheaval, times of change, and those are really the times that we’ve been living in the past few years,” says Kathy Bazoian Phelps, a lawyer who runs a blog about Ponzi schemes. “And of course there’s a lot of money out there people are looking to invest.
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