Madoff With Their Money
Reports this morning claim $50 billion fraudster-in-waiting Bernie Madoff is considering an insanity defence when he gets to trial.
The accused scam artist is apparently looking at the options of dementia or claiming he’s bipolar and launched the Ponzi scheme while on a high. So, why didn’t he stop it while on a low?
Don’t feel too sorry for those who got caught up in the Madoff madness. They became involved because of greed. Any credible investment manager will tell you that you win some, you lose some and slow and steady ultimately wins the race. Madoff’s firm promised returns even in bad times which we all know is just not possible. Charities, banks and celebrities were caught up because of investment managers who didn’t do their homework. Madoff cozied up to securities regulators and other officials who ultimately let some things slide. It takes more than one person to pull off a crime on such a massive scale, despite Madoff’s claim that he did it alone.
I have been approached to get involved in smaller pyramid schemes by people who just assumed that I had five or ten thousand dollars lying around. Whenever you read of these things falling apart, and they inevitably will, it’s always wealthy, bored ladies who lunch or men who golf who are caught up in them. They actively recruit new “members” to ante up thousands in hopes of making their way to the top of the heap where the huge return is alleged to be. 99.99 percent of the time the whole thing falls apart or is busted up before it ever makes it all the way and everyone loses their cash. If someone goes to the police it’s taken seriously as a fraud and those involved are charged. In short, it’s stupid and I’ve never been involved nor will I ever become involved. I’m just not that greedy or gullible, I guess.
Bernie Madoff will probably end up in a country club jail, forced to do some menial but easy task, like the dishes. But those who ignored logic and tossed funds at his too-good-to-be-true plan have to share some of the blame.
