Madoff £50billion Financial Scam

I've just been reading a fascinating story of how Bernard L Madoff, former chairman of the Nasda stock exchange has been arrested on charges of running a $50 billion Ponzi Scheme. A ponzi scheme - as in Charles Ponz, the crook who ripped off the gullible in 1920 with a pyramid investment fraud. He took from Peter to pay Paul, using money from new investors to pay interest and dividends. Apparently Madoff has admitted "It's all one big lie".

Some investors have apparently lost all their savings as they'd invested all their capital with him. I find it fascinating that people could invest everything with one firm.

The front page of the Sunday papers this week told of a a Buy to Let fraud where a Simon Morris has been arrested on charges of selling flats at 100% over their true price and some investors are now financially ruined.

The first rules of investment do not change - spread your money, diversify investments, or do not put all your eggs in one basket.

Remember if it seems too good to be true, it probably is.