Billionaires That Have Gone Broke
1. Elizabeth Holmes
Elizabeth Holmes was once on the cover of Forbes for founding a revolutionary startup worth an estimated $9 billion. Now, she is facing fraud charges. Holmes claimed her company, Theranos, was developing a revolutionary process to test for hundreds of diseases and conditions with just a few drops of blood, even though it was nowhere close to delivering this technology. Holmes now faces up to 20 years in prison on nine counts of wire fraud and two conspiracy counts related to defrauding investors, doctors, and patients.
2. Bernie Madoff
Bernie Madoff will go down as one of the most infamous scammers in history. Madoff ran the largest Ponzi scheme of all time, swindling an estimated $17.5 billion from investors. Trustees have reportedly recovered $13 billion of the stolen money. Madoff is currently serving a 150-year federal prison sentence.
3. Allen Stanford
Though Allen Stanford is not as well-known as Bernie Madoff, he gained and lost his fortune the same way — a Ponzi scheme. He defrauded about 18,000 people, many of them retirees, out of their savings. His scheme reportedly took in over $7 billion. Stanford’s net worth since dropped to zero. He was sentenced to 110 years in prison for his role in the scheme. Unlike with Madoff, however, Stanford’s victims have recovered none of their money.
4. Eike Batista
Once the world’s seventh richest man, oil billionaire Eike Batista was the face of Brazil’s booming economy in 2012. Bastista’s business affairs began to unravel when his oil company, OGX, could not keep up with his promised production, and investors pulled their money. His fortunes further declined as Brazil’s economy went into a tailspin, and Batista filed for bankruptcy.
Investigators eventually discovered Batista was involved in a kickback scandal that took down many of Brazil’s most prominent politicians, and they charged him with money laundering. He was sentenced to 30 years in prison.
5. Sean Quinn
Sean Quinn was once Ireland’s richest man, with an estimated net worth of over 3 billion euro. He grew his family quarry and diversified into different businesses like manufacturing, real estate, power plants and more. Quinn lost control of his business empire after a bad investment in the Anglo Irish Bank. Quinn tried to salvage the bank’s fortune by taking money out of his insurance company, but its stock was in freefall. The bank had to be bailed out by taxpayers, so the government assumed control. In 2011, he claimed that his assets were worth less than Â£50,000 and filed for bankruptcy.