Biggest Bums Of 2008

Biggest Bums Of 2008

About Robert Lenzner

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The biggest bum of 2008 (and for decades prior) is Bernard Madoff, whose knavish duplicity betrayed the trust of small and large investors across the globe. The Madoff Ponzi scheme is a criminal act that has decimated important foundations like the Picower and destroyed the wealth of widows and orphans.

Our bums list should include those conspirators in this scheme (family or otherwise), the handful of investors who claim they knew it was a scam but did not inform the government (they know who they are), the greedy fools behind the feeder funds that facilitated Bernie at his cheating (our sympathy to the family of Rene-Thierry Magon de la Villehuchet, the investment manager who lost more than $1 billion with Madoff and took his own life two days before Christmas).

hat should sit squarely on Madoff's conscience, if he has one. May the smirk on Madoff's face be replaced by the realization he is scoundrel and rogue No. 1 of our age.

A special bum designation is in order for the Securities and Exchange Commission officials who for decades did not bear down in their investigation to expose Madoff's roguish exploitation.

The main lesson from the bum Madoff: Do not keep all your investment eggs in the same basket, or in one investment technique, as it is far too risky. Diversify your investment managers and diversify the investment techniques they use and strategies they pursue.

Make sure your assets are held in your name by a fully insured custodian and that you get immediate transaction notices from your custodian, instead of the monthly reports that Madoff sent, which everyone believes are fiction.