Skip to Content
Stephen G. Rodriguez & Partners Stephen G. Rodriguez & Partners
Contact Our Firm 213-481-6811
Top

Pyramid Scheme

A Pyramid scheme is a fraudulent and illegal systematic plan in which an individual is offered an investment opportunity usually in the form of a network marketing plan to sell or promote a product, but which is in fact a scam to recruit new investors whose investment provide the revenues for the organizers and promoters. The revenues for the participant in the pyramid scheme are generated from new recruits rather than from retail sales. The pyramid scheme attracts new investors by offering extraordinarily high financial returns on their investment. The scheme continues to operate as long as there is a supply of new investors. The scheme eventually collapses when the existing investors decide to cash out or when there are no investments and no earnings, making it difficult to recruit new investors.

Pyramid schemes come in all shapes and sizes. However, there are two major distinguishing characteristics in pyramid schemes: the promoters of the pyramid scheme promise new investors a high rate of return on their investment; and there is never an actual product connected to the investment.

Pyramid schemes are illegal in the United States. They are prosecuted under federal and state white collar crimes law: pyramid statutes, securities laws, wire and mail fraud statutes, and RICO laws. Pyramid schemes prosecutions are charged as felonies in federal court and can be charged as both a misdemeanor or a felony in California. California pyramid schemes are prosecuted under Penal Code section 327. This law makes it a crime for any person to contrive, prepare, participate or operate any endless chain. An endless chain in the law is defined as any scheme for the disposal of property whereby a participant pays money for the chance to receive compensation for introducing or inviting other persons into participating in the scheme. A California pyramid scheme conviction under Penal Code section 327 is punishable by one year or up to three years in jail.

If you are being investigated or charged with securities or investment fraud, including Pyramid or Ponzi schemes, immediately consult with a Los Angeles criminal lawyer to determine what legal steps you should take to protect yourself and what legal options are available to you.

  • ABA
  • BAR
  • NACDL
  • CACI
  • Maba Logo
  • Avvo Client's Choice

Client Reviews

At Stephen G. Rodriguez & Partners, your satisfaction is our priority! See for yourself what our clients have to say about working with us.

  • "God Bless you Stephen, wish you all the successes in life."

    Stephen is a great contact and extremely helpful and knowledgeable. I am glad that I was his client in the past. Top lawyer, top man. God Bless you Stephen, wish you all the successes in life.

    - HS Singh
  • "Don't hesitate to contact them!"

    I was referred to this group of Attorneys. I was started with a low cost made arrangements. My case had to do with assault allegations. The case was dismissed they helped me not to loose my daughter to the system.

    - Adriana C.

Results Matter

Hire the Right Attorney
  • Restitution Defendant charged in Federal case with felony Fraud involving several million dollars with a 40 years prison exposure.
  • Dismissed Defendant arrested for Spousal Battery.
  • Dismissed Defendant arrested for felony Rape.
  • Mistrial Defendant (Los Angeles photographer) charged with assault and battery.

Contact Our Firm Today

Your Initial In-Office Consultation Is Free – Call (213) 481-6811
  • Please enter your first name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.
  • By submitting, you agree to be contacted about your request & other information using automated technology. Message frequency varies. Msg & data rates may apply. Text STOP to cancel. Acceptable Use Policy
  • Comprehensive Defense Strategies

    We focus on the facts of the case to create a strategic defense. We work tirelessly for our clients, prepare for trial, and work toward securing the best possible outcome – whether that be a dismissal, reduction in charges, or alternative sentencing.

  • Step-by-Step Guidance

    We provide step-by-step guidance throughout each phase of the process. The criminal justice system can be a confusing and frightening place, which is why we support our clients every step of the way. We provide the confidence you need to move forward.

  • 75+ Years of Combined Criminal Law Experience

    At Stephen G. Rodriguez & Partners, our defense attorneys have the ability and experience to handle even the most complex criminal cases. From misdemeanors to serious felonies, no case is too small or large for us to handle.

  • Communication And Personal Attention

    We make ourselves available at all times, responding promptly to our clients' calls. Initial in-office consultations are free and include an in-depth discussion of your situation. Throughout all points of your case, your lawyer will keep you informed.

  • Never Talk To Police
    Understand your rights when questioned by law enforcement, and avoid making statements that could be used against you.
    Defend Your Rights
  • Confronted by Police? Know What to Do
    Receive honest, practical advice during a free initial consultation, and take the right steps to protect yourself. Call now to get started!
    Read More
  • Don't Plead Guilty!
    A plea bargain might not be in your best interest. Let us help you explore all your legal options before making a decision.
    Learn More