Saturday, May 2, 2009

Ponzi schemes seem to proliferate in tough economic times

CLEVELAND -- Warren Buffett described a classic Ponzi scheme when he told shareholders in a recent newsletter, "You only learn who has been swimming naked when the tide goes out."

Lately, there have been a lot of folks without suits on -- and no bigger example than Bernard Madoff, the Manhattan financier arrested in December and charged with massive securities fraud. His $65 billion scheme may be the largest Ponzi ever uncovered, but it is hardly the only one.

During the first three months of 2009, the Securities and Exchange Commission, the Commodity Futures Trading Commission and the FBI have charged dozens of investment officers or firms with Ponzi swindles. In Ohio, Ponzi scams in 2008 led the list of the top investment crimes for the second consecutive year.

Why the rash of cases?

0 comments:

Post a Comment

Be the First