There Are Ways To Use Greed, Stupidity and Corruption As A Super Thief

There is always someone or something that represents the greed, corruption and stupidity at the close of an era. Ex Wall Street chairman and founder, Jewish born Bernard L Madoff, is one such story, that signified the age of 'easy credit'. A period of time that brought nations crashing to their knees, across the globe, in the worst recession since the 1930's Great Depression.

With his wife Ruth alongside, seventy year-old Madoff was the brains behind the largest ponzi scheme ever to hit the world.  Madoff' customers continued to earn extraordinary interest, even though the financial world was toppling down around everyone's ears. Madoff fed off people's greed and stupidity by using 11 simple rules.

• Madoff's Project Conveyed Exclusivity

Madoff gathered his clients from exclusive clubs, while refusing numerous other would-be investors, thereby creating an instant exclusivity. He made people believe they were 'lucky’'to finally be added to the scheme.

• Madoff Was Well Connected

Madoff and his wife were once portrayed as the 'Must-Be-Seen-With' people of the society circuit. The world's wealthiest and most famous people were frequently invited to spend time with the Madoffs on their 55 foot boat, or at one of their three opulent mansions.

• Madoff Was Highly Respected And Well Liked

Madoff and his wife Ruth, cultivated a feeling of well-being in all those around them. They gave the appearance of being such likeable people, only there to help others, that the pair were held in high regard by both the rich and famous.

• Madoff Networked

Madoff used his 'friends', his 'A' clients, to recruit other clients on his behalf. This allowed Madoff to secure entry to the wealthy all over the globe. Madoff was seen as an important member of the Jewish community.

• Madoff Provided A Business Plan

Madoff had a business plan for his ponzi scheme, where money from new investors paid out older investors. All this was achieved without even making any real investments.

• Madoff Had The The Gift Of The Gab  - A Salesman's Dream Talent

Madoff was never backwards in coming forward with a swift and satisfying piece of advice for his investors, through his gift for the gab.

• Madoff Created Credibility

Madoff advised his new investors to start out small and allow their investment to build up. This added to the credibility of the scheme.

• Madoff Seemed to Do All The Correct Things

While Madoff was an original designer of the concept of Internet access to accounts, he never allowed his clients to have access to this technology. Instead he sent out a monthly newsletter, featuring reports to investors revealing their 'trading' activity and 'investments'. In spite of several investigations, Madoff seemed to come up squeaky clean.

• Madoff Avoided Using Credible Accounting Firms

Madoff absolutely refused to use credible accounting and auditing firms. Instead he chose a totally unknown firm that had no accountability, allowing Madoff to 'alter the books at will’. Madoff never let any outside performance audits be conducted.

• Madoff Established A Relationship With The Regulators

Numerous people raised concerns about the high rate of interest his investors were receiving, when the economy was on a worldwide nose-dive. Well known critics openly declared it was mathematically impossible for Maddof's investment strategies to return what he said they were doing. Madoff openly admitted he was 'close to the regulators' and was known to have lied to the SEC. In fact, Madoff was an advisor to the regulators, as the former chairman and founder of the NASDAQ, as well as an adviser to the Securities and Exchange Commission.

• Madoff Was A High Profile Donor

Madoff was always quick to come forward as a political donor and philanthropist (do gooder). Madoff and his wife created a charitable foundation, donating frequently to hospitals and theatres, as well as to research programs.

Now having heard how Madoff was able to use greed, corruption and yes, stupidity, take a quick look at the other side of the coin, according to a person who was close to Madoff for approximately twenty years.

• Madoff was a sexist egomaniac who was known to frequent massage parlours and had the phone numbers of many high class hookers.
• Madoff was irresistible to women and a long-time flirt, with a roving eye (even though his wife Ruth watched him like a hawk).
• Madoff was known to severely insult his staff when he went under stress

Madoff's victims in the ponzi scheme are well-known, including even the clinical Professor of Psychiatry at the University of Colorado, one of the world's leading experts on financial scams and the author of Annals of Gulibility: Why We Get Duped And How To Avoid It.

The domino-effect from Madoff's scheme will be felt for years to come in the realms of the rich and famous. Madoff was only got caught after confiding to his two sons, the whole business was 'one big lie'. The biggest lie the world has ever seen. It is not known how much money Madoff stashed offshore, before his arrest, or how much jewelry he and his wife managed to ‘pass around’ prior to his arrest.