By Rick Gould, CPA, JD
Today is the anniversary of a day most Americans
want to forget. December 11 is often
called “Madoff Day”, in celebration of the arrest of Bernie Madoff, who was
convicted of the largest and most costly corporate fraud in U.S. history. $70 Billion dollars is estimated to be the
amount his clients lost. For many of
them it was their life savings. Madoff
was arrested on December 11th, 2008.
There were other major Ponzi scheme frauds uncovered
in 2008. Two that stood out: Mark
Dreier, Managing Partner of the Dreier Law Firm was arrested for defrauding
clients of three quarters of a billion dollars, and R. Allen Stanford, ultimately
convicted of a $7 billion dollar fraud in his Houston, Texas headquartered bank.
These three men, as well as others who found similar
fates, would have been wealthy in their own right; certainly
multi-millionaires. But instead of being
satisfied with that hard to fathom amount of money, they wanted more. They believed that, as Gordon Gekko coined in
the 1987 movie “Wall Street” -- “Greed is Good.” Their only goal seemed to be to make more
money, no matter whose lives they financially crushed in the process.
The only message I see here is this: those who invest
their hard-earned dollars must thoroughly check out the track record and
reputation of who they are investing with, whether it be a financial
institution, advisor, investment counselor, or a “trusted” Managing Partner of
a law or CPA firm. Unfortunately, the
few that believe “Greed is Good” taint the credibility and reputation of the
rest of us that are ethical and honorable.
December 11, 2008 should not be forgotten. It should serve as a war cry for increased transparency
and accountability, and a sobering reminder of the importance of due diligence when
choosing investment partners and business advisors.
