CPE Packages (Incl. Ethics) for Multiple States and Qualifications Available. Price $4/credit - CLICK HERE to view.

Taxation of Ponzi Clawbacks & Tax Refund from Ponzi

Richard Lehman

Lehman Tax Law

Tuesday, August 06, 2019 | 10:00 AM EDT



Subject Area


Course Description

A Ponzi Scheme Clawback of profits is typical in many Ponzi Schemes. Ponzi Scheme Trustees appointed to achieve fairness among defrauded investors have successfully recovered billions of dollars from the Scheme who withdrew funds from the Scheme though there were indeed no real profits at all in the Scheme. Everyone but the promoter eventually lose money. Those investors lucky enough to have escaped the Ponzi fraud and taken profits early in the scheme remained profitable until the Trustee “CLAWED BACK” their false profits. A Ponzi Scheme “Clawback” is accomplished when a Trustee obtains refunds from those benefitted from the early “profits distributions”. Clawbacks of the Scheme profits from an innocent investor who first benefitted from the Scheme can receive a unique tax treatment.

Learning Objectives

  • Understanding of Ponzi Scheme and Clawback
  • Understanding of taxation aspect

Who Should Attend?

  • Enrolled Agent