When the Bernard Madoff scandal broke, it was inevitable more Ponzi schemes would come to light. For a good reason too. With every bubble there is fraud. Look behind every bubble and you'll find the cousins of fraud, greed and unchecked enthusiasm. So when the biggest one we've seen unwinds, we are sure to see more fraudulent acts come to the surface.
Now The Wall Street Journal reports the arrest of two more fraudsters. Arthur Nadel, who has been accused of defrauding clients of millions of dollars and investment firm proprietor Nicholas Cosmo who allegedly raised more than $370 million between 2006 and 2008 by promising investors 48% annual returns from funding commercial loans.
Now of course, compared to Madoff's $50 billion theft, this is just small change, lunch money if you like. But what's important is that this is just the tip of the iceberg. We can expect many more to come to light before the year is out.
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