Money manager Bernard Madoff Arrested: Investors Who Entrusted Funds to Firm Are Shaken
The Wall Street Journal Online
By PETER LATTMAN and ROBERT FRANK
News of money manager Bernard Madoff's alleged fraud sent shock waves through upscale communities in the New York area and Florida where wealthy individuals had entrusted billions of dollars to Mr. Madoff for decades.
Ira Roth, a New Jersey resident, who says his family has about $1 million invested through Mr. Madoff's firm, is "in a state of panic." He said his 86-year-old mother-in-law has been living on the investments' returns, and he has been using the funds to pay college tuition.
"This is going to kill so many people," said a current investor in Mr. Madoff's fund. "It's absolutely awful."
Many of his clients knew Mr. Madoff personally but had little understanding of his investment strategy, which reported remarkably consistent returns of some 1% per month. They often referred to it as a "black box." The fund had reported positive investment returns through the end of November.
As per usual you can read the entire article (highly suggested) by either clicking on the title or you can click here. You can also find more information on this issue by going here.
Categories: Ponzi Scheme, Economics, Madoff
Comments