Unseen hand of the market? More like a middle finger, amirite?
Madoff investors burned by SEC, too - Dec. 15, 2008
Regulators reviewed the fund and found nothing wrong. Hell-oo?! Plus, five ways to crook-proof your portfolio.
Not long ago the Securities and Exchange Commission reportedly looked into Madoff's operation
and found nothing wrong! Hell-oo?! Anybody home?! Did the SEC ask who the custodian of these investments was? I guess not. That's disgraceful negligence on the part of the SEC.
This from the president of a fund of fund business: "Every time one of these frauds is discovered I get scared to death it could happen to us. We do lots of things to try to ensure it doesn't, such as checking and confirming auditors and auditor changes, using a private investigator to check on managers when we first invest and the having the PI annually update the file, trying to find references which are not on someone's reference list, etc." If big investors like these could be fooled, he said, anybody can be fooled.
So, bottom line, could investors have avoided Madoff? And what can you do to make sure you don't get suckered by the next smooth talking, cheap-trick artist? Good questions.