Friday, June 19, 2009

Have you been scammed?

Recently, someone asked me how it’s possible in a heavily regulated financial services industry that billions of dollars can be scammed from so many people in the Madoff scandal. Companies memorialize business activities in records. When records don’t exist, at a minimum, the customers don’t have confidence doing business with you. So how did he do it….”According to the Wall Street Journal, “After funneling billions in investor money to Bernard Madoff over nearly two decades, Fairfield Greenwich Group is offering up its explanation to investors . . . firm supplied falsified trading documents . . . what now appear to have been fake electronic records from an independent firm that inventories much of Wall Street’s stock and bond holdings.” WSJ, 3/2/09