What Bernie Madoff Taught Every Investor
Bernie Madoff died today at the age of 82. Convicted of fraud against a massive group of investors in a Ponzi scheme involving tens of billions of dollars, Madoff remained in prison until his death.
Madoff's story involves a professional investor who had had a successful career before taking things one step too far. Unable to live up to the commitments he had made to the many investors who turned to him for help, Madoff successfully covered up his activities for years. It was only when the financial crisis brought things to a head that the full extent of Madoff's fraud became evident, leading to his arrest, trial, conviction, and 150-year sentence.
As painful as the Madoff episode was for the many investors snared by his scheme, it holds some valuable lessons that every investor can learn from. Perhaps the most important is that even after Madoff's death, the risk of securities fraud remains alive and well.
Source Fool.com
