Bernie Madoff died quietly in prison last month at the age of 82. His name may have faded from the headlines, but he will be remembered as the infamous architect of an epic securities swindle that lost billions in client funds.
At one point, Madoff’s wealth management business was the largest in the world. He seemed reputable, likable and well connected. The former Nasdaq stock market chairman was known for providing high steady investment returns for his wealthy clients’ portfolios.
Unfortunately for Madoff’s clients, his wealth management business was a massive Ponzi scheme ultimately, losing billions of his clients’ assets earned him a 150-year prison term. As investors, we can learn from the red flags that Madoff’s clients experienced, but for some reason, chose to ignore.
Signs that something was not quite right:
- Clients were denied online access to their accounts
- All information was sent by mail
- Madoff’s firm served as its own…