Frank Case is a veteran of the U.S. Army, a money manager and a whistle-blower.
He spent 10 years investigating Bernie Madoff before the ponzi schemer’s scam was uncovered, and now he has advice for people looking for a money manager.
In an interview published in Richard Wilson’s ultimate guide to investing for the ultra-rich, The Family Office Book, Casey explains how he uncovered Madoff, and more importantly, what any investor should do to stay away from those like him.
The problem with Madoff, said Casey, is that he had a great pedigree. Everyone on the Street knew him as a big shot so it clouded people’s judgement. There is, however, a way to get around that.
From the book:
No matter who it is, even if they have a great pedigree and even if we know someone in common, I will never move forward without a background check by an FBI type of guy, and it’s not that expensive. I mean, if you are going to make a major investment in a manager, what in the devil is $750 to $1500 to do a background check on the guy? You would be surprised what you find.
So yeah, get a former Fed on this.
And if you’ve never seen the documentary made about Casey and his fellow Madoff sceptics, you should. It’s called Chasing Madoff. Check out the trailer below: