The magic of the Madoff case

With the death of Bernard Madoff, there have been reports on the antics of the scam that defrauded 3 million people around the world of $65 billion ($17.5 billion confirmed). Some explain the workings of the pyramid in detail; others profile famous victims. There are films that fictionalize facts and even a list (almost complete) of those who have believed their lies on Wikipedia. The texts issue warnings, show examples and hint at the typical modus operandi of the probable scams available on the market. I want to give the point of view of those who were actually in the eye of the hurricane. I want to look at it from the point of view of the Brazilians who were harmed by Madoff Investment Securities LLC and the companies that represented it here and abroad. In order to understand what happened, it is necessary to accept the human condition of being influenced by financial market illusionists, which only exists in a permissive environment, where forms of surveillance are loosened by poorly designed regulations. In general, the financial market is subject to very clear rules about what can and cannot be done, and especially by whom. Many fraudsters claim to have lost money in risky activities when in fact it was fraud. Beware. When making investments, there are procedures for checking the suitability of the financial agent with the support of the market's sheriffs. The CVM (Securities and Exchange Commission) publishes proceedings, judgments and penalties. If the real financial market draws its strength from the hard work of honest agents, we unfortunately have to live with those who develop techniques to deceive with tricks that depend on the speed and agility of arguments. They present exceptional gains obtained by those who have made investments in an exclusive, wonderful place, open only to people like those covered in this story. Madoff and the network of companies that colluded with him formed the most insidious type of fraudster, whether it was the way in which the illicit advantage was obtained or the way in which the losses were caused. In the work I did before the courts in New York, Luxembourg, Geneva, among others, in partnership with local offices, one of the most important tasks was to demonstrate demonstrable losses and the lawfulness of the origin of the funds. Bernie's magic pyramid has shown that many ordinary investors are distanced from their investments. Being aware of the structures invested in is fundamental to taking extra care. Other 'Madoffs' are out there. It's important to watch out for unrealistic gains from anything. There are many magicians on the market, but - unfortunately - there is no such thing as magic. What does exist is a lot of care, work and patience. Pierre Moreau is a lawyer and partner at Moreau Valverde Advogados.