How To Use Greed, Corruption And Stupidity As A Super Thief by:Wendy Stenberg-Tendys
There is always someone or something that is that sums up greed
, corruption and plain human stupidity of an age. Jewish born Bernard L Madoff, ex Wall Street chairman and founder, is one of those stories, which symbolized the age of easy credit. A time that brought all nations around the globe to their knees, in the worst recession to hit, since the Great Depression of the 1930's.Seventy year-old Madoff was the brains behind the largest ponzi scheme that the world has ever seen. Madoff's wife worked with him from the inception of the scheme ever to hit the world.
Madoff's customers earned out of the ordinary interest, even when the world of finance was falling in a heap around everyones ears. Madoff fed off people's greed and stupidity by applying eleven simple rules.
Madoff's Project Exuded Exclusivity
Madoff gathered in his clients from exclusive clubs, while rejecting many other potential investors, thus creating an instant exclusivity. He made people feel they were the fortunate ones to finally be incorporated in the scheme.
Madoff Was Well Connected
Madoff and his wife were once portrayed as the 'Must-Be-Seen-With' people on the society circuit. The worlds wealthiest and most famous people were frequently invited to spend time with the Madoffs on their 55 foot boat, or at one of their three opulent mansions.
Madoff Was Well Liked And Highly Respected
Madoff and his wife Ruth, promoted a feeling of well-being in all those around them. They gave the appearance of being such likeable people, only out to help others, that Madoff in particular, was held in very high esteem by the rich and famous.
Madoff Networked
Madoff got his 'friends' to recruit on his behalf. This allowed him to obtain admittance to rich people all over the globe. Madoff was an important citizen of the Jewish community. He used his 'A' list of clients to lure others into the scheme.
Madoff Provided A Business Plan
Madoff produced a ponzi scheme, where money from new investors paid out older investors. All this was achieved without even making any investments.
Madoff Had The Salesman's Dream Talent The Gift Of The Gab
Madoff was never backwards in coming forward with a swift and appropriate word of advice for his investors, young and old.
Madoff Established His Credibility
Madoff advised his new investors to only start with a small amount and let their investment build up. This added credibility to the scheme.
Madoff Seemed to Do All The Correct Things
While Madoff was an original designer of the concept of Internet access to accounts, he never allowed his clients to have access to this technology. Instead he sent out a monthly newsletter, featuring reports to investors revealing their 'trading' activity and 'investments'. In spite of several investigations Madoff appeared to always come up squeaky clean.
Madoff Avoided Using Credible Accounting Firms
Madoff refused the use of credible accounting and auditing firms. Instead he used a completely unknown firm that had no accountability, allowing Madoff to freely manipulate the books. Madoff never allowed any outside performance audits.
Madoff Established A Relationship With The Regulators
Numerous people raised concerns about the high rate of interest his investors received, particularly when the worldwide economy was taking such a dramatic nose-dive. Well known critics openly declared it was mathematically impossible for Maddof's investment strategies to return what he said they were doing. Madoff openly admitted he had a 'close relationship with the regulators' and was known to have lied to the SEC. In fact, Madoff was an advisor to the regulators, as the former chairman and founder of the NASDAQ, as well as an adviser to the Securities and Exchange Commission.
Madoff Was A High Profile Donor
Madoff was never backward in coming forward as a political donor and philanthropist (do gooder). Madoff and his wife formed a charitable foundation, donating frequently to hospitals and theatres, as well as to research programs.
Now having heard how Madoff beat greed, corruption and, yes stupidity, let's take a quick look at the other side of the coin, according to a person who was near to Madoff for around twenty years.
Maddoff was a sexist egomaniac who frequented massage parlours.
Madoff was irresistible to woman and a long-time flirt, with a roving eye (even though Ruth, his wife watched over him like a hawk).
Under stress he insulted his staff
Madoff's victims in the ponzi scheme are well-known, including even the clinical Professor of Psychiatry at the University of Colorado, one of the world's leading experts on financial scams and the author of Annals of Gulibility: Why We Get Duped And How To Avoid It.
The fallout from Madoff's scheme will be felt for years to come in the land of the rich and famous. Madoff only got caught out after telling his two sons, the whole business was 'one big lie'. The biggest lie the world has ever seen. It is unknown how much money Madoff managed to stash away offshore, before his arrest.
About the author
Dr Wendy Stenberg-Tendys and her husband are CEO's of YouMe Support Foundation (http://youmesupport.org) providing high school education grants for children who are without hope. A chance to fulfill their dreams at whatever level they chose to. Take a few minutes to check it all out at Win A Resort (http://winareosrt.com)
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