How was Bernard Madoff able to trick so many investors with his Ponzi scheme?
For many people, the name Bernard Madoff has become synonymous with
Ponzi scheme. His $65 billion investment scam shook investors, as his highly orchestrated
scam started unraveling. Some investigators believe that Madoff’s
fraudulent activities started decades ago. Madoff is currently serving
150 years in prison. Many of his former investors are still trying to
recover their losses.
Supposedly, Madoff was able to trick investors by making his portfolios
resemble the returns of the S&P 500. Unlike the common Ponzi schemes,
which pay investors
high returns, Madoff’s scam paid smaller amounts. This tactic, along with the
fact that Madoff was on top of paperwork and his investors believed they
could withdraw their money at any time, allowed him to avoid suspicion.
If you have lost money due to a Ponzi scheme, an investment fraud lawyer
from our firm may be able to help. For more information, contact us by
calling toll-free (888) 390-6491 or filling out our online form. The case
evaluation is free.
You can also learn more about recovering losses after a Ponzi scheme by
watching Attorney Dave Meyer's video below or
read his article for the American Bar Association.