29 November 2010

Madoff Fraud - the absurd gets even absurder

Not enough that regulators have ignored warnings about the Madoff Ponzi scheme for many years and that many advisers were negligent - if not fraudulent - when they advised 'clients' to put their money into Madoff-related investment vehicles, now even many of those investors among their customers who had made positive returns from their investments before Madoff crashed are being pursued by those same advisers for the return of their profits in order to allow the intermediaries to be able in turn to satisfy the claw-back demands of the bankrupty administrator (who in the meantime is running up an amazing amount of fees for himself). The lesson for the investor is: do not rely on anyone with a financial interest in your investments uncontrolled authority over your affairs without taking unbiased advice from a truly independent and trusted adviser - and do not wait for the regulators to help you either when things go wrong.