Corporate & Securities Law

Occasionally, victims of Ponzi schemes may find themselves defending against actions by receivers, trustees, or SIPC representatives bringing ?clawback? actions to recover money that they might have received from the fraud.

Clawback lawsuits typically target those investors in a Ponzi scheme who either received distributions early on in the scheme or withdrew their money before the scheme collapsed.  However, clawback lawsuits can also target third parties who have benefited from the scheme in any way, such as advisers who received commissions or financial institutions that generated fees from the scheme.

That?s the case with investors who invested with Elk Grove, Illinois man Kevin G. Carney.  Carney is accused of promising investors that he would pay up to 20% monthly interest on funds invested by him, backed by the production generated from his purported stock trading software business.  However, rather than use this money as promised, Carney used the investor money for his personal use and paid off earlier investors with new investor money in a classic Ponzi scheme manner. 

The experienced securities attorneys at Eccleston Law stand ready to assist and defend those who are subject to a clawback lawsuit.  If you have been served with a clawback lawsuit or if you have received a letter from a receiver, bankruptcy trustee or a representative from the SIPC, please contact Jim Eccleston at Eccleston Law Offices at 312-332-0000 to discuss your defense options.