If you get wrapped up in an investment scam, you can lose money even if you get out early with all your money

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This is what happened with Madoff. The SEC went after everyone’s gains going back many years. The gains were fraudulent. Imagine you made some money 5 years ago and cashed out. Then took the proceeds and bought a house. The SEC comes knocking and wants the money back. You don’t have it and it’s all tied up in your home… This happened to a lot of folks.


Why it’s called ponzi scam if you don’t mind


Pretty famously happened with Madoff, when it came to the owners of the NY Mets, they and the team (and therefore the fans) got screwed.


What’s funny is 12% is not really even impressive given the historical 10-year performance of large cap and growth funds. It’s amazing these scammers never think to, you know, actually just invest some of the money into the market into these funds to give them the liquidity they need to continue on and just take fees – like real investment advisors. But I guess if they were smart they wouldn’t need to do these crimes.


Was it worth getting a lawyer and going to court or did they make him to pay significant amount anyway?