Despite the scam, did a lot of people actually make a killing by investing with Bernie Madoff (See details)?

The scheme was fairly simple. When someone "invested" with Madoff, Madoff simply deposited that money into his personal Chase Manhattan bank account. And when someone requested a redemption, Madoff paid it out of the same account. As long as the amount of the deposits exceeded the amount of redemption... show more The scheme was fairly simple. When someone "invested" with Madoff, Madoff simply deposited that money into his personal Chase Manhattan bank account.

And when someone requested a redemption, Madoff paid it out of the same account.

As long as the amount of the deposits exceeded the amount of redemption requests, he was good. The scheme worked until the day that wasnt the case anymore, in December 2008, when Madoff could no longer meet the redemptions. By then, Madoff's assets were a fraction of the amount investors entrusted him with.

But what about someone who requested a redemption earlier, before the cat was out of the bag?

Afterall, when someone requested a redemption, Madoff couldnt simply give them their principle back. He promised 10 to 12 percent returns and mailed out monthly fake account statements showing that, therefore THAT is the amount he had to pay on the redemption request.

Suppose I had invested my life savings into Madoff's "fund" in the early 90s, and made regular contributions, never knowing it was a fraud.

Then suppose I had requested my redemption in 2007 or early 2008, when Madoff could still afford to pay out on individual requests.

Would he have been writing me a check that would have made me a millionaire right about then?
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