When the market turns bad, investors need their money back. As Madoff and Robert Allen Stanford payback can be brutal.
The SEC went after today Stamford charging that three of his companies defrauded investors in an $8 billion certificates of deposit scheme. As the SEC said they “perpetrated a massive fraud based on false promises and fabricated historical return data to prey on investors.”
Sound a bit like Madoff. Tell people something they want to believe, create a “good” reputation, and then take people to the cleaners.
There will be a lot more of these schemes coming out of the walls. It will start when people who are low on money need to tap their investments. In some cases, the cash won’t be there.
Douglas A. McIntyre
Contact [email protected] for any questions or corrections.
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