Some fund managers invested and lost client's money in the Bernie Madoff Ponzi scheme. One example was that of the Fairfield Greenwich Group that directed $US7.3 billion of client money into the fund over a 5 year period.
(a) If you were a client of Fairfield Greenwich Group would you expect that your fund manager should do minimum checks on recommended investments?
(b) As a client, do you think you should be made aware if your fund manager or financial planner would gain a commission from your investment?
(c) If you on the advice of your financial planner, invested your money in the Bernard Madoff Investment Scheme and them subsequently lost it, would you blame your financial advisor given that it was a well orchestrated fraud?
(d) Would your answer in 3 be different, if you new that the Fairfield Greenwich Group earned $US500 million in commissions by directing the $US7.3 million capital into the fund?