Case 12: Not missing the opportunity to lose billions

Bernie Madoff's investors believed that his fund was rock-solid. He promised consistent annual returns of 10% to 12% and seemingly delivered on this promise for years. HIs Ponzi scheme has cost more than 40,000 investors who believed in him $6 billion in principal, even after recovery of $11.5 billion in investor's funds. Ponzi schemes like Madoff's succeed for longer or shorter periods because they play on greed. "Wanting in" and our desire to "get the payoff" can lead us to suspend disbelief and place trust where, indeed, it is misplaced.