1.. What are some hazards of allowing investors to pursue claims based on their most recent account statements? For many years, investors around the world clamored to invest with Bernard Madoff. Those fortunate enough to invest with “Bernie” might not have understood his secret trading system, but they were happy with the doubledigit returns that they earned. Madoff was well connected, having been the chairman of the board of directors of the NASDAQ Stock Market and a founding member of the International Securities Clearing Corporation. His credentials seemed to be impeccable.

However, as the old saying goes, if something sounds too good to be true, it probably is. Madoff’s investors learned this lesson the hard way when, on December 11, 2008, the U.S. Securities and Exchange Commission (SEC)

charged Madoff with securities fraud.

Madoff’s hedge fund, Ascot Partners, turned out to be a giant Ponzi scheme.