Bernard Madoff is the latest guru who appears to have emulated Mr. Ponzi. His investment management firm has been able to generate a 10% return every year, irrespective of what the market does. Last month he claimed his portfolio was up 5.6%, although the S&P was down 37.5%.
There have been people who have questioned Madoff's genius over the past few years. Some have contacted the SEC. But nothing was done. Madoff kept collecting money and 'investing' it. He must have been a hell of a salesman as estimate are that the losses will total $50 billion.
The really sad part about this whole matter is that his sons turned him in.
Update
Madoff bilked many prominent people (the owners of the NY Mets and Philadelphia Eagles, the head of GMAC, the former owners of Stop & Shop, major donors to Boston institutions such as the Museum of Fine Arts), supposedly sophisticated investors (BNP Paribas, Nomura Holdings, Neue Privat Bank) and hedge funds (Faifield Greenwich Group, Tremont Capital Management and Maxim Capital Management).
His basic selling points were exclusivity and a steady return.
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