We have all been told that “if something sounds too good to be true it probably is”.  This definitely applies in this scenario.  Thousands of people lost their life savings by relying on Mr. Madoff.  Charities lost money.   The public lost further confidence in an already shaking economy.

Do the spouses and children who directly benefit from the rewards of this kind crime bear any responsibility?  Should they have questioned where all the money was coming from?   What about the investors?  Should they have wondered how they were able to make such great returns with Madoff when others were not doing so well?  Do they bear some responsibility for their own loss? 

I think this is a great lesson for all of us.  There is no free lunch.  If something looks too good to be true, it probably is.  Too often we are willing to turn a blind eye to the wrongs of our loved ones or if we personally benefit.  There are inevitably peaks and valleys in all things, especially investments.  If someone promises you above market returns year after year, they might be a liar.