Alvin Dang

To what extent has the advancement of corporate laws and regulations helped to combat and deter the increasing number and sophistication of ponzi schemes?

Started Mar. 26, 2025

Abstract or project description

The increasing sophistication and quantity of Ponzi schemes within the US economy poses a significant threat and undermines market stability and investor trust. This paper investigates the extent to which advancements in corporate laws and regulations have been effective in combating and deterring Ponzi schemes, which have grown increasingly complex and prevalent in recent decades. The paper assesses the strengths and limitations of current legal approaches by analyzing legislative reforms, regulatory frameworks, and enforcement mechanisms implemented in key jurisdictions, particularly following high-profile cases. Additionally, the paper traces the arc of trends in scheme detection, prosecution, and prevention. The paper suggests that although enhanced corporate transparency requirements, stricter compliance standards, and improved inter-agency cooperation have contributed to early detection and deterrence, persistent gaps remain, especially in areas involving international jurisdiction, emerging technologies, and developing economies. The paper concludes with recommendations for further policy innovation and regulatory development to more effectively address the evolving threat of Ponzi schemes in modern financial systems.