The additional information you provided seems to suggest that the scam was marketed as a type of investment product where investors' funds were managed by the promoter of the investment. It further seems to suggest that the investors were seeking to make a profit and at times were able to withdraw funds. However, at this time, perhaps no one knows definitively how the money was handled. Was it at any time invested in any legitimate venture or was it a situation where early investors were allowed to withdraw some money all of which came from later investors--your basic Ponzi scheme.
Your best option may be to continue to pursue this as a theft loss. As noted in the prior post, theft losses of this type are fact specific, and the facts need to prove:
- that a theft occurred under the law of the jurisdiction wherein the alleged loss occurred,
- the amount of the loss; and,
- the date the taxpayer discovered the loss. The taxpayer bears the burden of proving by a preponderance of evidence that a theft actually occurred.
Intent to defraud is a question of fact to be determined from all the circumstances of the case and usually must be proved circumstantially. Courts must examine the evidence to determine whether an alleged thief behaved in a manner consonant with an intent to defraud; a record establishing a mere ordinary breach of contract or fiduciary duty will be insufficient to support a finding of a party’s intent to defraud.
You need to collect your documents, particularly those that support your money transfers, and speak with an attorney about initiating a complaint alleging theft. If this matter involves any type of offshore activities, then you might have to discuss the matter with federal authorities.
@LeoVTM
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