Net winner / net loser
Definition
Classification of investors based on whether they withdrew more (net winner) or less (net loser) than their original principal. In Ponzi receiverships, courts frequently require net winners to return fictitious profits to the estate for distribution to net losers.
Related terms
- Affinity fraud
- A variant of Ponzi or investment fraud targeting members of a defined community (religious, ethnic, professional). The operator exploits existing trust networks...
- Clawback
- A receivership or bankruptcy action to recover payments made to investors (including fictitious profits and sometimes principal) before the scheme collapsed. Clawback...
- Ponzi scheme
- A fraudulent investment operation in which a central operator pays returns to existing investors using capital from new investors, creating the false...
- Pyramid scheme
- A recruitment-based structure in which participants earn fees or commissions primarily by recruiting new participants rather than from genuine product or service...
- Receiver / trustee
- A court-appointed officer who takes control of the scheme operator's assets after collapse, marshals remaining funds, investigates the fraud, pursues clawback claims,...
Explained in
- Ponzi and Pyramid SchemesClassification of investors based on whether they withdrew more (net winner) or less (net loser) than their original principal. In Ponzi receiverships, courts...