Unsuspecting Victims of Fraud

John Merchant, CPA CFE

Several weeks ago, investors who had placed their funds with Bernard Madoff were shocked to learn that he had been charged with operating a Ponzi scheme that may very well cost those investors all of their money.  Now, other investors are beginning to discover that they too may be victims.  Investors who purchase shares of mutual funds, hedge funds and other investment vehicles often do not know exactly how the managers of those funds invest the money.  Some investors are now learning that they have invested in funds that in turn placed the money with Madoff.  As a result, they too may be victims as the value of their investment drops accordingly.  If you have invested in a mutual fund, a hedge fund, a fund of funds or any other registered investment company we encourage you to find out exactly how your money is being invested and the potential risk that you are taking.

For more information, visit: http://www.time.com/time/business/article/0,8599,1866154,00.html.

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