Bernie Madoff is gone forever… but the financial scams will continue

The world famous “financier” has left the building, as they say. Madoff passed away in prison, where he truly belonged, on April 14th, aged 82. He died of natural causes; perhaps not surprisingly for apparently he was quite a celebrity in his last residence. Celebrities enjoy special treatment anywhere they happen to go. That’s one heck of a perk to be a celebrity. 

I wish I could say that his departure from this glorious world of ours makes it a better place, but, sadly, the damage he has done with his monumental Ponzi pyramid scheme is here to stay. Some people committed suicide because of him. Not only people who have lost all their savings, but also his own son. 

He has made history by committing the biggest financial fraud the world has ever known, to the tune of a pretty hefty sum of about 65 billion US dollars. 12 years after he was sentenced in 2009, less than 15 billion has been recovered and returned to his victims. Say what you want about the guy, but he certainly deserves to be called a “great equalizer,” although not exactly in the positive sense of this expression: his victims were not just ordinary hard-saving folks, but also Hollywood celebrities like Kevin Bacon or Steven Spielberg. 

He was supposed to serve 150 years of prison time for his crime, but he managed to avoid over 90 percent of it. It appears then that it pays off to be a Ponzi schemer or a scam artist in general. No wonder thus that financial scams crop up all the time. 

The hotter an investment or trading sector, the more likely you are to run into scam operators. The more popular you are, the easier it is for you to run a large scam operation. Madoff was very popular, in large measure thanks to being the Nasdaq stock market chairman at some point of his finance career. Hence, his operation was able to scam quite a number of people for quite a long time, though some actually ended up net winners. The wins are due to the donations from the losers of the pyramid he had run for nearly two decades, though some suspect that for much longer, and which eventually collapsed when the market went way too south during the Great Recession that started around 2008. 

Very recently, I dedicated two tweets to Bernie Madoff (see above), but not long ago I had also tweeted about other scams that target retail traders or investors (see below).

Moreover, there is some more information about these things and the trading marketplace in general on my site, specifically in its main trading advice section called A Word of Advice. You may want to check it out to educate yourself about the dangers you potentially face from miscreants that populate every marketplace.  

The schemes you have to be particularly cautious about these days have to do with cryptocurrency, the most popular representative of which is Bitcoin. There have been several of them over the last few years and since this is a very hot sector and largely unregulated, they are more likely to crop up in it than in less novel and more regulated trading or investing fields such as stocks, bonds, or futures. Forex is also known for its greater share of scams than the other three areas mentioned. 

I believe that you are better off to learn how to trade in order to manage your own money instead of relying on services of “trading wizards” for some of them may well turn out to be ordinary (and sometimes, as is certainly the case with Bernie, even extraordinary) frauds. Being less dependent on others is the way to go in general, and this is just one way to accomplish that. Once again, let me recommend A Word of Advice as a good starting point. 

Then you can explore other things I have to offer, in particular my flagship product, an e-mini futures day trading course that has turned quite a number of people into successful traders. And convinced many more that trading can be a winning proposition without relying on trading gurus. 

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