You Just Discovered You’re Repping A Ponzi Scheme

There are few risk management problems potentially more catastrophic than this one, whether the issue is a Ponzi scheme or some other kind of fraud, writes Mark J. Fucile in this Defense Counsel Journal article. If it happens, he says, there are three questions you need to address immediately. (1) Must, or should, the firm withdraw? (2) What can the firm disclose in its defense? And (3), what are the areas of potential exposure and what practical steps can a firm take in advance to better protect itself? He suggests a couple of routine precautions in working with any client, in order to minimize future risk.