How did people retire through Bernie Madoff? Or, cash in their 401k?
People who have retired on the money invested with Madoff must have been supporting people throughout the years. (Or else, his fraud would have been uncovered a long time ago). What if people wanted to cash in their 401k's? How did they do all this if the money wasn't really there?
Public Comments
- Its a ponzi scheme. Investor deposits increased from maybe several million dollars many years ago to many billion of dollars before he finally got caught. Therefore as long as new investors keep increasing deposits to exceed withdrawals, the scheme can continue for many years without the fund ever making any money.
