Bernie Madoff’s Ponzi scheme | The Frugalista

Bernie Madoff’s Ponzi scheme

by frugalista on December 23, 2008

Madoff_web_3
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?

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