Using the Words "Ponzi Scheme"

The words "ponzi scheme" are words that cannot be said loosely without thought. The consequences of calling a business or entity a ponzi scheme should be carefully considered first. Attorney Kathy Bazoian Phelps co-author of the book, "The Ponzi Book" explains that depending on certain contributing factors to how the words are said, some can get away with it and some cannot. In Phelp's blog post linked below she describes two separate cases that involved the words ponzi scheme being used by two different government agencies. In SEC v. Small Business Capital Corp. Mark Feathers for SBCC claimed that the SEC violated his First Amendment rights by using fighting words such as "ponzi-like". The court denied his motion saying that the words do not "...inflict injury or tend to incite an immediate breach of the peace." In the Emerging Money Corp. v. United States, EMC claimed that the IRS contacted EMC's clients and told them that their business is a "ponzi scheme" and that they were involved in "sham transactions". The IRS was found in the wrong for for their assertion that EMC's program was a ponzi scheme. Check out Phelps blog below for more information.

http://theponzibook.blogspot.com/2013/01/alleged-ponzi-scheme-perpetrators-speak.html