The worst investor fraud since Bernie Madoff appears to be upon us. Yesterday, managers at the New York based hedge fund Platinum Partners have been arrested as federal prosecutors allege the occurrence of a $1 billion fraud. Mark Nordlicht and has partners spent the last decade giving their investors nearly 20% annual returns, with those returns being fueled through return of other investors’ capital in response to withdrawal requests rather than actual investment returns.
Although the Platinum Partners clients may be able to receive some recovery through a combination of SIPC, insurance, and the distribution of remaining assets, this remains a worst-case nightmare for those who entrusted a meaningful portion of their accumulated savings to the stewardship of the Platinum Management team.
For the millions of Americans who have financial advisors, the natural follow-up inquiry is: How can I prevent my family from falling victim to the fraud of a … Read the rest of this article!