Asset recovery is the "endgame," in white collar crimes, according to John S Bain, managing director of John S Bain Chartered Forensic Accountants. Specializing in forensic and investigative reporting, fraud investigations, asset recovery, insolvency and bankruptcy proceedings, the Bahamian MD says there is a growing demand for his services.
“About 93 per cent of the victims of white collar crimes–fraud, money laundering, electronic crimes, Ponzi schemes–never get their money back,” says John S Bain, managing director of John S Bain Chartered Forensic Accountants, a firm specializing in forensic and investigative reporting, fraud investigations, asset recovery, insolvency and bankruptcy proceedings.
A Ponzi scheme pays returns to old investors from money injected by new ones, rather than from any actual profit earned. Essentially, it takes from Peter to pay Paul. Consequently, the scheme’s investment fund lasts only as long as the flow of new money can sustain the high rates of return paid out to existing investors. When the numbers of new investors dwindle, the scheme collapses, just as Bernard Madoff’s $65-billion investment fund did in December 2008.