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
Pink Gets Candid about Her “Modern Marriage” with Carey Hart
Pink has seven multiplatinum albums, won three Grammy awards, MTV Video Music Awards, Michael Jackson Video Vanguard Award and is a star...May 7, 2019
Kate Beckinsale and Pete Davidson’s Casual Romance Comes to a Screeching Halt
Underworld actress Kate Beckinsale and Saturday Night Live comedian Pete Davidson’s romance appears to have fizzled out. What started out as a rather casual relationship appears...May 6, 2019
Tiffany Haddish Paid Tribute to her Old Homeless and Hungry Self on Instagram
Tiffany Haddish is enjoying her newfound fame today. But not so long ago, the comedian made a promise to herself when...May 6, 2019
Selena Gomez on “Me Time,” Love, and Therapy
We haven’t been hearing from Selena Gomez lately, although she has not really taken any hiatus from the entertainment scene or...May 3, 2019
Brie Larson Acted in ’13 Going on 30′ and Mark Ruffalo is Shook by this Fact
It seems only a few years ago, but fifteen years have passed since the Jennifer Garner and Mark Ruffalo movie, 13...May 3, 2019
Kendall Jenner is Paving Her Way in the Beauty Industry
Who would have thought that some members of the Kardashian-Jenner clan would someday be business moguls? Definitely not us. It seemed...May 3, 2019
Prince Harry Shows Up with Kate Middleton at Anzac Day Service
Rumors of an on-going royal feud will finally be put to rest after Prince Harry appeared publicly alongside Kate Middleton to...May 3, 2019
Jamie Lynn Spears Warns People Going After Her Family, Especially Sister Britney
For so many years, Britney Spears has been hounded by the paparazzi and media, but she has always been calm when...May 2, 2019
Diddy Shares Kim Porter’s Heartbreaking Words to Him Before Her Death
Many were shocked when news of the death of model and actress Kim Porter broke. They couldn’t believe how the seemingly...May 2, 2019