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The Most Balanced and Credible Educational and Networking Conference on OFCs. Period.

The 10th Annual OffshoreAlert Conference

April 29 - May 1, 2012

The Ritz-Carlton, South Beach

Miami Beach FL U.S.A.

 

For More information visit www.OffshoreAlertConference.com or Call +1 305-372-6296

April 29 - May 1, 2012. The Ritz-Carlton, South Beach. Miami Beach, Fl

The Most Balanced and Credible Educational and Networking Conference on OFCs. Period.

The Postmodern Ponzi Scheme: Empirical Analysis of High-Yield Investment Programs

A High Yield Investment Program (HYIP) is an online Ponzi scheme, a financial fraud that pays outrageous levels of interest using money from new investors. Despite being illegal to operate in most jurisdictions, there are many active HYIP websites at any given time.

We call them 'postmodern' Ponzi schemes because we believe that many of the investors are well aware of the fraudulent nature of the sites, but believe that by investing at an early stage – and withdrawing their money before the scheme’s collapse – they will be able to make a profit at the expense of less savvy investors.

An extensive online ecosystem has developed in support of HYIPs, involving discussion websites, digital currencies, and third-party ‘aggregator’ websites that track HYIP performance. These aggregators list dozens of active HYIPs, tracking core features such as interest rates, minimum investment terms and funding options. They operate forums in which individuals can report their experiences; but more significantly, the aggregators appear to make their own investments in some of the HYIPs and report on when interest payments cease.

We have spent many months collecting data from HYIP websites and aggregators to measure the extent of HYIP activity, so that we can improve our understanding of this particular type of online criminality. We have found no evidence of collusion between different aggregators. We use their data to assess HYIP time to collapse, finding – perhaps unsurprisingly – that longer lifetimes are associated with lower interest payments and longer mandatory investment terms. We look at the role of digital currencies in supporting HYIPs, finding that a handful of systems dominate. Finally, we estimate that this type of criminality is turning over at least $6 million/month and set out ways in which it might be disrupted.

Date & Time
  • May 01, 2012 from 9:30 AM - 10:30 AM

Target Audience

  • Investigators

Theme

  • Fraud and Asset Recovery
  • Investigation and Intelligence
Experience
  • Intermediate
Tags
Speakers
Tyler Moore

Tyler Moore

Visting Assistant Professor, Wellesley College (Massachusetts)

Platinum Sponsor

Grant Thornton 270 

Grant Thornton is one of the world’s leading organisations of independently owned and managed accounting and consulting firms. More than 2,600 partners provide clients with distinctive, high quality service in over 100 countries. The Fraud Insolvency Division provide expert services relating to all forms of economic crime using forensic asset tracing combined with Insolvency Act powers. Our teams comprise forensic, insolvency, tax and computer forensics specialists, providing advice during the prevention, investigation and recovery processes. We offer solutions in the following areas: fraud investigations; expert witness; recovery and tracing of misappropriated assets and funds; proceeds of crime receivers.

 

Sponsors

Kinetic Partners 
Astigarraga Davis 180 
Martin Kenney 180 
Appleby 
 
Cayman National 
Mourant Ozannes 
Baker Tilly 180 
Maples 180px  
 
Zolfo-Cooper  
Phillips & Cohen 
Fraser Milner Casgrain 
O'Neal Webster 
 
Invest Barbados 180 
Securehost 180 
 
 

Exhibitors

U.S. Immigration and Customs Enforcement 180 
Mourant Ozannes 
Foreshore 180 
Hidden Technology 180 
 
Grant Thornton 180 
Kixko 180 
Caledonian 180 
ACFCS 180 
 
 

Corporate Sponsors

Bernd Klose 180 
Husch Blackwell 180 v2 
Bennett Jones 180 
Lennox Paton 180 
 
Greenberg Solicitors 180 
Financial Examinations & Intelligence 120 
 
 

Partners

International Compliance Association 180 
KYC 360 180 
Cayman Financial Review 180 
ABCA 180 
 
Compliance Search Group 180 
Compliance Exchange 180 
hedge fund managers 
IFC Review 180