Bernie Madoff
Today in New York City, 71 year old Bernie Madoff will be sentenced for having created the second largest financial fraud in history. (What's the largest? The 1,200 page Cap & Trade bill just passed by Congress)
Madoff's Ponzi scheme is reported to have erased more than $50 Billion in wealth from it's victims.
Over the weekend, my sister-in-law was entertaining long time friends from New York, including an executive with JP Morgan. The Morgan exec was involved with wealth management for high net worth individuals. He regaled me with stories of countless Morgan clients who insisted that JP Morgan invest their portfolio with Madoff.
JP Morgan made entreaties to Madoff, asking to perform a due diligence of his trading strategy. Not surprisingly, Madoff refused their inquiries. As a result, JP Morgan refused to invest in the Madoff Fund.
But some of their clients couldn't be placated. So focused were they on Madoff's returns that they removed some or all of their dollars from JP Morgan and put it with Bernie. Some even loved the Madoff returns so much that they would mortgage their large mansions so they could put even more with Madoff. Today, those investors, having lost everything (including their homes), are relegated to moving in with their children.
For more on the impact of this scandal, I recommend a great article on Vanity Fair - Madoff's World.
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Effingham area citizens, don't forget about the upcoming tax protest on the Court House Square. It will be 4 PM on July 4th.
Madoff's Ponzi scheme is reported to have erased more than $50 Billion in wealth from it's victims.
Over the weekend, my sister-in-law was entertaining long time friends from New York, including an executive with JP Morgan. The Morgan exec was involved with wealth management for high net worth individuals. He regaled me with stories of countless Morgan clients who insisted that JP Morgan invest their portfolio with Madoff.
JP Morgan made entreaties to Madoff, asking to perform a due diligence of his trading strategy. Not surprisingly, Madoff refused their inquiries. As a result, JP Morgan refused to invest in the Madoff Fund.
But some of their clients couldn't be placated. So focused were they on Madoff's returns that they removed some or all of their dollars from JP Morgan and put it with Bernie. Some even loved the Madoff returns so much that they would mortgage their large mansions so they could put even more with Madoff. Today, those investors, having lost everything (including their homes), are relegated to moving in with their children.
For more on the impact of this scandal, I recommend a great article on Vanity Fair - Madoff's World.
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Effingham area citizens, don't forget about the upcoming tax protest on the Court House Square. It will be 4 PM on July 4th.
A case of greed begetting greed. I'm sure there's a special place in a very hot place for Madoff someday. However, people that ignored the "if it's sounds to good to be true" rule share a small amount of blame also.
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