After Guilty Plea, Madoff Jailed For Ponzi Scheme
It’s about time. Facing charges worth over 150 years in prison, Bernie Madoff has pled guilty to charges related to his operating a $50 billion Ponzi scheme that has ripped off investors of their entire life savings, all on the promise of high stock market returns.
I don’t really have anything else to say in this regard, except that I hope this episode shows the value of “diversification” – putting all of your savings into one source is never a good idea if you intend to rely on it (such as during retirement).
That’s why I even have two bank accounts, despite not needing the second one most of the time. Convenience and reassurance of financial flexibility.
One other thing – the arrogance of this guy was amazing. He used the mail service to gift away millions of dollars in assets to avoid having it seized by the federal government to pay the investors he swindled. All the while, he insisted on “house arrest” in a multi-million-dollar penthouse apartment in New York City.
It’s nice he’s pleading guilty, but I sure hope they don’t let him off easy.