A Florida lawyer is facing charges of operating a Ponzi scheme involving bogus legal settlements that took $1 billion from investors, according to The Wall Street Journal.

Scott Rothstein promised investors double-digit returns in what were essentially structured payments similar to the kind you see advertised on bad late-night TV. Claimants would accept pennies on the dollar upfront and investors would get a bigger amount of money when a full claim was paid.

But all the supposed legal settlements were fictitious. Yet people fell for the lure of easy money. In classic Ponzi scheme style, Rothstein allegedly used money from new investors to pay off older investors. As with any Ponzi scheme, you eventually run out of investors and the whole thing collapses when people ask for their money.

Rothstein was the head of a big law firm of more than 70 lawyers. So far he's the only one named as being involved in this scheme.

Now, it's easy to look at Rothstein's $1 billion scheme and be underwhelmed because it's not the $50 billion that Bernie Madoff stole. But $1 billion is still a lot of money.

So here's the takeaway for you: When someone promises you a "can't lose" opportunity with huge returns, know that you are one step away from sinking in quicksand. Even Rothstein's early investors who did make handsome returns will be compelled by the courts to give it all back.

Remember, "safe" investments don't have high yields. If you want to earn a lot of money, you're always looking at moderate to high risk investments.