tag:blogger.com,1999:blog-5465015914589377788.post6254633296206335500..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Detecting Ponzi SchemesMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5465015914589377788.post-42617136359060891992012-02-05T07:59:00.597-05:002012-02-05T07:59:00.597-05:00diversification and due dligence, two steps any in...diversification and due dligence, two steps any investors must perform. <br />Madoff scheme had red flags all over it, and many in plain sight requiring little financial expertise.<br />1. not registered with SEC<br />2. Cohmad, a feeder fund co-founded with Mr. Cohen and Madoff. http://femvestor.blogspot.com/2011/11/madoff-ponzi-scheme-red-flags-since.html<br /><br />3. small auditor in a strip-mall (two people for a fund that was valued at many billion dollars)<br />4. secretive (always closed but can be open to you as a favor)<br />5. Vague in explanation (if you ask questions your investment will be returned to you)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-16052439184394338542009-07-15T11:54:52.876-04:002009-07-15T11:54:52.876-04:00Two things peculiar about the Madoff case:
He use...Two things peculiar about the Madoff case:<br /><br />He used a phony baloney auditor, some guy working alone out of a strip mall who spent no time at the office. You allude to this in your post.<br /><br />The assets Madoff held for clients were held in house. So, another way of detecting fraud would be to have an independent curator of the accounts, say a brokerage or a bank. Investors should be sent statements from this independent institution so they can confirm the assets they hold. It would have to be a reputable, well-known firm.genehttps://www.blogger.com/profile/05608927986297939720noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-50009869921369499542009-07-15T09:15:18.204-04:002009-07-15T09:15:18.204-04:00Geeeeezzzzz...you would think that if con artists ...Geeeeezzzzz...you would think that if con artists saw each other getting caught and spending life times in prison they would live the straight and narrow...at least for a little while! And everyone wonders why people aren't spending money and investing!HorryTelephoneMBhttp://htcinc.netnoreply@blogger.com