Bernie Madoff’s Ponzi scheme
Are you following
this Bernard Madoff money scam? Madoff was an investment money manager who scammed rich people out of $50 billion, using a Ponzi scheme. A Ponzi scheme is a swindle offering unusually high returns, with early investors paid off with money from later investors, according to the Yahoo article. Madoff was known as "The Man" in investment circles. He’s the former chairman of the Nasdaq. His hedgefund routinely delivered double-digit returns.
I have been captivated by this story for several reasons:
1) Can you trust anyone?
2) How did his accomplished clients get fooled? Were they greedy? Here is an essay from one his clients, "How I Got Screwed by Bernie Madoff."
3) I’m truly upset that he used affinty fraud to gain the trust of his victims. He preyed on other Jews, knowing they would be more trusting of doing business within their own community. Among Madoff’s clients: movie director Steven Spielberg, New York Daily News publisher Mortimer Zucker and Torah-focused Yeshiva University. The Wall Street Journal penned this article, Madoff Exploited the Jews.
I’m just in awe! These are strange times. I can only imaging losing millions because I trusted a guy who turned out to be a big old fake.
What do you think? Do you know anyone impacted? Were the victims, greedy, naive or human? What do you think about Madoff?
5 Responses to Bernie Madoff’s Ponzi scheme
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I think it was a combination of all of the above. A person should be leary of any fund that regularly returns 15%+. Also, the secretiveness (is that a word?) should have been a red flag. I feel sorry for the people involved but it could have been avoided.
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I had to look up the word Ponzi when this story broke. A familiar racket – they call that a pyramid where I’m from.
I think the victims’ greed clouded their judgement. The moment anyone wanting to invest my money uses the word “network” we’re done talking.
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A scam artist can come in any package so I am not really surprised by his behavior. They all appear to be a little greedy which is why they are all in this situation. Everyone wants to get rich fast but it usually doesn’t happen so quickly….what were they thinking? And why would some of them invest all that they had? One woman lost her entire savings…..
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I believe in the saying that ‘Information is Wealth’.Thank you for sharing the Bernie Madoff’s Ponzi scheme through this site.
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I couldn’t agree more with everyone. If something is too good to be true…well you know the rest. I do feel for them as well, but I gotta go back to personal responsibility. Only positive returns (most in the double digit range)? No one is that good. Being unable to comprehend the statements issued by your investor? A sure sign that everything is not on the up and up. The secrecy. The “limited” enrollments. Come on! Are we in high school? Greed surely go the best of most and willful ignorance scored the rest.
But if with the fault of these investors (and greed no doubt), I do have to say that the SEC screwed up big time. Something this sheisty should have been seen by the group. I know they can’t catch everything, but with all the information coming out this seems like some good ole boy back patting let this go one too long. But even so, we invest knowing that nothing is guaranteed. I’m still in the game and hoping to remain afloat in these turbulent times. I still believe in our system despite its flaws. I just hope that we can learn from others’ mistakes and misfortunes and be more vigilant with our finances.
Keep the great posts coming Natalie!
savvy