That is because Darnell follows the “prudent man rule.” The Prudent Man Rules is the fundamental principle for professional money management, stated by Judge Samuel Putnum in 1830: "Those with responsibility to invest money for others should act with prudence, discretion, intelligence, and regard for the safety of capital as well as income." Some states which don't have specific legal lists require fiduciaries to uphold the Prudent Investor Act, also called the Prudent Investor Act (Rule).
Read more: http://www.investorwords.com/3927/Prudent_Man_Rule.html#ixzz0z8RC6Q8U
Darnell takes more risk with his investments. So far this extra risk has paid off. Mr. Williams is not willing to take more risk for others including his friends.
Darnell takes more risk with his investments. So far this extra risk has paid off. Mr. Williams is not willing to take more risk for others including his friends.
Bernie L. Madoff vs. Darnell L. Williams
Bernard Lawrence "Bernie" Madoff (pronounced /ˈmeɪdɒf/;[1] born April 29, 1938) is an incarcerated former American stock broker, investment adviser, non-executive chairman of the NASDAQ stock market, and the admitted operator of what has been described as the largest Ponzi scheme in history. His biggest crime is that he swindled almost $65 billion from the top wealthiest people in the United States.
Since 1991, Madoff and his wife have contributed about $240,000 to federal candidates, parties and committees, including $25,000 a year from 2005 through 2008 to the Democratic Senatorial Campaign Committee. The Committee has returned $100,000 of the Madoffs' contributions to Irving Picard, the bankruptcy trustee who oversees all claims. Senator Charles E. Schumer returned almost $30,000 received from Madoff and his relatives to the trustee, and Senator Christopher J. Dodd donated $1,500 to the Elie Wiesel Foundation for Humanity, a Madoff victim.
While awaiting sentencing, Madoff met with the SEC's Inspector General, H. David Kotz, who is conducting an investigation into how regulators failed to detect the fraud despite numerous red flags.[3] Madoff said he could have been caught in 2003, but bumbling investigators acted like "Lt. Colombo", never asked the right questions.[2]
"I was astonished. They never even looked at my stock records. If investigators had checked with the Depository Trust Company, a central securities depository, it would've been easy for them to see. If you're looking at a Ponzi scheme, it's the first thing you do.", Madoff said in the June 17, 2009 interview. SEC Chairman Mary Schapiro was a "dear friend," and SEC Commissioner Elisse Walter was a "terrific lady" whom he knew "pretty well."[4]
Since Madoff's arrest, the SEC has been criticized for its lack of financial expertise and lack of due diligence, despite having received complaints from Harry Markopolos and others for almost a decade. The SEC's Inspector General, H. David Kotz, found that since 1992, there were six botched investigations of Madoff by the SEC, either through incompetent staff work or neglecting allegations of financial experts and whistle-blowers.[5][6][7]
Mr. Madoff invested the clients money, controlled the clients accounts, and the client had no way of auditing their own accounts. Madoff claimed that he made a percent a month for his clients consistantly with no proof of how this was done. Honest people complained but since he was admired by the leaders of the investment and political communities both Democratic and Republican, no one cared until the rich and powerful lost their money and complained. If these victums were middle or lower class, Madoff would still be one of our financial leaders today.
How does Madoff’s activities compare to Williams?
Except for a few friends like the one in the last blog, (See http://bondinvestments.blogspot.com Saturday, September 11, 2010), Darnell Lamont Williams teaches the middle and lower classes how to handle their own accounts. Like Bernie Maddoff, he claims that his clients made over one percent a month. The difference, Darnell can back it up and tells the world how it is done. The client handles their own accounts and Darnell gets no pay for this advise. We have a lot of Madoff’s in the investment world. So you want to find an advisor that follows the “Prudent Man Rule” and you must know more about what you want to do with your money than the advisor.
The lession here is: The more you know about your investments, the better off you are in keeping your money. The only person with your interest in mind is you!
References:
1. ^ "Voice of America pronunciation guide". Voice of America. http://names.voa.gov/SearchAction.cfm?searchtype=2&Name2=madoff. Retrieved March 18, 2010.
2. ^ Becker, Bernie (March 26, 2009). "Money From Madoff Is Rerouted". The Caucus (New York Times). http://thecaucus.blogs.nytimes.com/2009/03/26/money-from-madoff-is-rerouted. Retrieved March 29, 2009.
3. ^ a b Kouwe, Zachery; Peter Edmonston (June 23, 2009). "Madoff Lawyers Seek Leniency in Sentencing". New York Times. http://dealbook.blogs.nytimes.com/2009/06/23/madoff-lawyers-seek-leniency-in-sentencing/. Retrieved September 12, 2009.
4. ^ Gendar, Alison (October 31, 2009). "Bernie Madoff baffled by SEC blunders; compares agency's bumbling actions to Lt. Colombo". New York: Nydailynews.com. http://www.nydailynews.com/news/ny_crime/2009/10/31/2009-10-31_bernie_baffled_by_sec_blunders.html#ixzz0Vaymp8JU. Retrieved March 16, 2010.
5. ^ a b "Wall Street legend Bernard Madoff arrested over '$50 billion Ponzi scheme'". The Times (London: Times Newspapers Ltd.). December 12, 2008. http://www.timesonline.co.uk/tol/news/world/us_and_americas/article5331997.ece. Retrieved December 13, 2008.
6. ^ "Report of Investigation Executive Summary" (PDF). http://www.sec.gov/spotlight/secpostmadoffreforms/oig-509-exec-summary.pdf. Retrieved March 16, 2010.
7. ^ House Committee Financial Services, Investigations of Madoff Fraud Allegations, Part 1 C-Span
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