Blog Posts
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Sam Bankman-Fried Crypto Mogul Convicted on All Counts in Multibillion-Dollar Fraud Case
In a New York court, the legal trial of Sam Bankman-Fried, the founder of the bankrupt crypto exchange FTX, culminated in a guilty verdict on multiple counts of fraud and conspiracy. The complex case swiftly ended with the jury delivering a guilty verdict within hours. Bankman-Fried, upon hearing the verdict, displayed minimal emotion, contrasting with…
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Don’t Let Ponzi Schemes Defeat You: How to Claim Tax Refunds and Move Forward
In this Report # 2, Richard S. Lehman dives deeper into the phrase “reasonable prospect of recovery” and its importance in determining the timing of theft loss deductions. Learn about the origin of this phrase and how it affects the real economics of recovery. This is a comprehensive guide to understanding the phrase “reasonable prospect…
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FTX Troubles Exposed in Latest Report
FTX Trading Ltd. and its affiliated debtors have published a report detailing the misuse of customer deposits at FTX.com. According to the report, FTX.com owed its customers approximately $8.7 billion at the time of the filing. To investigate the matter and maximize recoveries for stakeholders, the FTX Debtors enlisted the help of experts in various…
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Cryptocurrency – A Ponzi Scheme Trend?
Additional Ponzi Scheme Discovery The Ponzi Tracker “….. takeaway from the data was that over 25% of the uncovered Ponzi schemes had a significant nexus to cryptocurrencies, many of which touted purported high returns from digital asset trading. Perhaps unsurprisingly, these schemes were more likely to have a worldwide reach and accordingly involved significant sums…
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The Pros And Cons Of The IRS Ponzi Safe Harbor
The IRS Ponzi Safe Harbor provision is a tax law that provides relief to taxpayers who have suffered losses in a Ponzi scheme. Here are some potential pros and cons of the Safe Harbor provision: THE PROS: Tax Relief: The safe harbor provision allows taxpayers to claim a theft loss deduction for the amount of…
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Tax Law And The Mitigation Section
The section of tax law that involves the clawback is commonly referred to as the mitigation section. A distinction can be made between clawback of profits and clawback of principal. A clawback of profits is where you can go back, use this mitigation section, and reopen the statute and take your tax refund based upon…
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Net Operating Loss – No Longer Valid
Quick note; On page 8 of the “IRS Revenue Ruling”, the “Issue 5. Net operating loss” is no longer valid. As of today the IRS has not updated it on their website. https://www.irs.gov/newsroom/help-for-victims-of-ponzi-investment-schemes The timing of the IRS tax loss claim is very important. Value can be lost without good professional advice. Contact Richard…
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There Is A Choice When You Have A Clawback
A clawback is when a trustee recovers money from an investor who profited from the Ponzi scheme. You can either deduct the amount of money that you have paid as a clawback of profits in the year you paid it and then use that deduction to accomplish tax refunds or there is a very unique…
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The Safe Harbor
AT-A-GLANCE: REPORT No. 3 Report No. 3 explains how the IRS’s Ponzi Scheme Safe Harbor provision may apply to investors who have suffered losses due to FTX’s alleged fraud. Describes FTX’s alleged fraudulent activities, including market manipulation, wash trading, and misleading investors about the safety of their funds. The author notes that these activities are…
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A Reasonable Prospect Of Recovery
AT-A-GLANCE: REPORT No. 2 Report No. 2 will explain the phrase reasonable prospect of recovery. This phrase determines whether a deduction for the theft loss in a Ponzi scheme, such as FTX’s, should be taken in the year it is discovered or some other future year. The law does not permit the deduction to be…