Bernie Madoff and me
- January 26, 2010
- 0 comments
- Posted in Taxes
I might have gotten rooked by Bernie Madoff, thanks to one of my accountants. About 10 years ago, he told me that he could get me in with a particularly astute investment manager. “There are no home runs,” he said. “Just a steady 10 to 20 percent a year.” Naturally, my ears pricked up. A steady 10 to 20 percent sounded like a home run to me. “So how is it done?” I asked. My accountant wasn’t sure but it involved puts and calls on blue-chip stocks combined somehow with Treasury securities. The adviser was Ezra Merkin. If I called him, he would explain it all.
I didn’t call because I’m allergic to complicated investments. I assume that they carry high, hidden fees and won’t work out as well as promised. I don’t even bother to investigate, I just say no. Nevertheless, I kept that note in my files for years, always wondering if I had missed the boat.
As we know now, Ezra Merkin was sending all his clients’ money to Bernie Madoff. I dodged the bullet, not because I smelled a rat, but because one of my personal investment rules is: Buy only simple things. Over time, they’ll probably work out the best.
I recommend that rule to one and all. And by the way, that accountant isn’t my accountant any more.
Tags: Bernie Madoff, invesment scams
