Four Years Later, Lessons from the Madoff Ponzi Scheme Still Relevant to
This week marks the
fourth anniversary of the Bernie Madoff Ponzi scheme – one of the largest Ponzi investment schemes in U.S. history.
In December 2008, the unraveling of Bernie Madoff's
Ponzi scheme turned the investment world upside down. Investors, investment firms,
regulators, and charities suffered catastrophic losses. Though Madoff
will be spending the rest of his life in prison for his actions, other
con artists continue to cheat investors out of their hard-earned money
in new investment schemes nearly every week.
Thankfully, every cloud – even a massive thunderhead like Madoff’s
Ponzi scheme – has a silver lining; by paying attention to
how Madoff conned investors we can learn a lot about
how to avoid falling victim to an investment scam.
The Madoff Ponzi scam also did change
how the SEC handles securities fraud. The SEC hopes these rules and policy changes will mean more efficient
investigations into securities fraud, stronger cases against the people
or entities responsible for investment fraud, and that US investors are
Most importantly, Madoff’s scheme has taught us that we need to:
- Ask questions.
- Verify the answers.
- Get everything in writing.
There’s no sure way to prevent investment fraud, but doing those
three things will go a long way toward helping you avoid losing your money
in bad investments.
If you need help coming up with
questions to ask an investment advisor, click here.
Use Brightscope or
FINRA’s newly enhanced BrokerCheck to verify the answers. And, make sure you know how to read andunderstand
the investment’s prospectus and your
If you feel you’ve uncovered a problem or that you may have been
the victim of investment fraud, contact one of ourexperienced securities arbitration attorneys today.
About our law firm:
Meyer Wilson represents individuals across the country who have been harmed
by investment fraud. All of our cases are handled on a contingency fee
basis and we never request a retainer of any kind. Contact us for more
information or complete the online form on the top of this page and we
will respond promptly.