Bernie Madoff, Let me Introduce you to 150 Years in Prison
Notorious Ponzi scammer Bernie Madoff has been sentenced to the maximum 150 years in prison for the $65 billion fraud that swindled his many devastated victims.Judge Denny Chin said the sentence was a symbolic one for a crime that showed "extraordinary evil" and "took a staggering human toll."
Many investors have followed the Madoff story, and wondered how this individual could hold himself out as a financial advisor for so many years with no semblance of alarm. In his wake, Bernie Madoff leaves behind a trail of individuals, institutions, and non profit foundations, with nothing left in their financial accounts but questions. "How could I have prevented this?", or "How can I research advisors in the future" is a topic of extreme interest following this grandfather of all investment scams.
How to Research Your Broker or Advisor
Even though the regulatory authorities failed to protect investors from Bernie Madoff, there are a number of measures in place to provide full disclosure for financial advisors. Topics such as customer complaints, past judgements, and current advisor status, can be found easily on the internet or by contacting leading industry watchdogs. Here are the two top federal agencies in charge of industry regulation.1) The SEC or Securities and Exchange Commission The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
As more and more first-time investors turn to the markets to help secure their futures, pay for homes, and send children to college, our investor protection mission is more compelling than ever.
2) FINRA or the Financial Industry Regulatory Authority. FINRA is an independent regulatory organization empowered by the federal government to ensure that America's 90 million investors are protected.
Click Here for FINRA's Broker Check
Trade and Professional Organizations
It is also a good practice to find out if your advisor is a member of any professional organizations. Some of these organizations include, but are not limited to:These Steps can Help Prevent another Bernie Madoff Moment Like This
Taking the previously mentioned measures, and researching your broker, can help to mitigate the chance that you can have your own personal Bernie Madoff moment life this:He then faced his victims in court and said, "I'm sorry."
Taking a sip of water to clear his throat, he began: “I cannot offer you an excuse for my behaviour. How do you excuse betraying thousands of investors who entrusted me with their life savings?”
At one point, he turned, only briefly to face his victims, saying: “I will turn and face my victims. I am sorry, I know it doesn’t help you. I live in a tormented state knowing all the pain and suffering I’ve created. I’ve left a legacy of shame.”
Minutes later, when he was asked to stand and was sentenced to 150 years in prison, Madoff stayed silent. He looked down as victims cheered and applauded the sentence.
