This Hollywood Duo Fell Victim to Madoff’s Ponzi Scheme. You Won’t Believe Who it is!
Kevin Bacon landed in a huge financial mess in 2008-09. He and Kyra Sedgwick, his wife, are among the host of Hollywood stars cheated by disgraced money manager Bernard Madoff, who admitted to bilking his wealthy clients out of billions of dollars. Madoff ran a $50 billion Ponzi scheme, but was arrested in December of 2008. Some famous names who lost money included Steven Speilberg, John Malkovich, Zsa Zsa Gabor, Elie Wiesel, Larry King Sandy Koufax, Eric Roth, Jeffrey Katzenberg, and Eliot Spitzer.
Bernie Madoff, an financier from the US, performed the biggest Ponzi scheme in the country, defrauded scores of investors, making off with billions of their funds, over a 17 year period, and possibly even longer.
In 2009, Madoff (aged 71) pleaded guilty to a total of 11 federal felony counts, which include securities fraud, mail fraud, perjury, wire fraud, and money laundering. Bernie Madoff was condemned to a 150 year prison term and ordered to forfeit $170 million in assets. The Ponzi scheme was a classic symbol of the greed and dishonesty which has seeped into the culture of Wall Street, even as people languished during the 2008 financial crisis. Madoff’s stature in the industry made it difficult for even the most sophisticated investors to detect his fraud.
The Madoff fraud offers some important lessons. Keep good records, is the moral of the story to be able to provide the forensic accountants with historic records which can always be verified. Investors must diversify but not only in the traditional sense. Diversify among different brokers. Everybody who had invested with Madoff thought that their investments were diversified because there were tech stocks. These were actually commodities stocks. Investors should spread their investments among more than one advisor. It’s never wise to put all your eggs in one basket, to use a time-tested saying. Finally, you can never ask too many questions. Your broker must explain all statements, how he chooses his stocks, and how he invests. Be very careful of whomsoever you allow to manage your hard-earned money.
More in Investments & Savings
All you Need to Know about Jeff Bezos’s First Public Outing with Girlfriend Lauren Sanchez
When news broke about the impending divorce of Amazon founder Jeff Bezos from Mackenzie Bezos, many speculated that a third party...May 22, 2019
The Cute Story of How Prince William Finally Got Serious About Kate Middleton
William and Kate Middleton, Duke and Duchess of Sussex may appear to be the perfect royal couple, but there was a...May 21, 2019
According to Oprah, Anybody can Relate to THIS Thing that Prince Harry Does
Those who have witnessed the late Princess Diana’s parenting techniques would remember how she tried her best to let her kids live...May 20, 2019
This is the Reason Why JLo is Not Planning Her Wedding Just Yet
Jennifer Lopez and Alex Rodriguez were engaged in March, but the pressure is on the singer-actress to set a date for the...May 17, 2019
Adele and Husband Simon Konecki Announce End of their Three-Year Marriage
After seven years of being together, Adele and husband Simon Konecki are calling it quits. Of these seven years, the couple had...May 16, 2019
Chrissy Teigen Talks about How She Teaches Her Kids to ‘Give Back’
Chrissy Teigen is very active on social media, which makes her an easy target for detractors, especially the ones who question her parenting...May 15, 2019
You Won’t Believe who Jennifer Lopez and Alex Rodriguez Went Out on a Double Date with
When you see Jennifer Lopez and Joanna Gaines together, your first thought would be that the latter is a great fan...May 14, 2019
Queen Elizabeth’s Gift to Kate Middleton on Her Wedding Anniversary is Like No Other
Parents-in-law normally do not usually give out presents to their daughters-in-law or sons-in-law during wedding anniversaries, especially when it’s not a...May 14, 2019
KJ Apa Talks About His Close Relationship with the Late Luke Perry, His TV Dad
Even though quite some time has passed since the death of 52-year-old actor Luke Perry due to a massive stroke in March...May 13, 2019