ABSTRACT
The legal actions may be civil, criminal, or both; most Ponzi perpetrators received both civil sanctions and criminal charges or convictions. In a criminal action, the convicted receives a prison sentence, probation, or home detention. The federal sentencing guidelines became effective in 1987, are advisory, not mandatory. The Federal Sentencing Guidelines were developed as a result of the Sentencing Reform Act of 1984. The purpose of this Act is to provide a base for similar sentencing when there are similar circumstances in crimes, in order to eliminate unfairness in sentencing that might be based on race, geographic regions, or socioeconomic factors. A 2008 Colorado case involving Norman Schmidt of Capital Holdings is an example of extreme sentencing. Pretrial diversion is a program that may be offered to select individuals before their trial begins. The offender is required to take responsibility for their actions but are not required to admit guilt.
