Set forth below is the text of a comment that I recently posted to another blog entry at this site:
Rob, if you actually had evidence of financial fraud I’m sure you would have brought it to a court of law by now.
Why did Madoff get away with his fraudulent fund for so long, Sensible?
Do you think it was hard to see that it was fraudulent? It wasn’t. There was a CPA who did the numbers and showed with 100 percent certainty that the Madoff fund was fraudulent. He wrote to the SEC and told them. They did nothing.
Then the fund collapsed. People lost most of their retirement money. THEN the authorities acted.
I am 100 percent in favor of having this matter addressed in a court of law TODAY. That’s better for every single person involved. Doing it today would mean your prison sentence would not be as long. Doing it today would mean that all the Wall Street Con Men could move on to doing productive work again. Doing it today would mean that we could bring this economic crisis to an end and enter the greatest period of economic growth in our history. Doing it today would mean that I could get my $500 million settlement check in hand and take over ownership of the Bogleheads Forum and all that good stuff. It’s a win/win/win/win/win.
IT IS NOT UP TO ME.
I can say that I think it would be better to do it today. And I do. But I cannot make it happen by myself. We need to get lawyers involved. We need to get prosecutors involved. We need to get journalists involved. And on and on.
For that to happen, people need to feel safe about posting honestly.
Wade Pfau almost made it happen. Wade and I together could have gotten this 12-year saga written up on the front page of the New York Times. That would have been the end of Buy-and-Hold. The entire Get Rich Quick house of cards would have come tumbling to the ground in six months.
But it turns out that Wade is one of those darn humans! He is responsible for two small children. He didn’t take to the idea of losing his job. He noticed how brutally abusive you Goons are and how unwilling Bogle is to get involved and he took a pass on seeing his career destroyed for the “crime” of co-authoring the most important piece of peer-reviewed research published in the last 3o years.
I am 100 percent in favor of going to court TODAY, Sensible. It’s not my call.
That’s not how Get Rich Quick schemes work. Get Rich Quick schemes are POPULAR until they bust. That’s what pulls people like you in! You are in the process of losing most of your money. But it does not make you happy to lose most of your money. You are lying to yourself. You are deceiving yourself.
You will be mad like everyone else when the bubble bursts. Perhaps you will demand your own imprisonment! That would be a Twilight Zone twist, would it not?
I wish that I could spare you the pain. I wish that I could spare Bogle the pain. I wish that I could spare millions of middle-class investors the pain.
But I am not superman, my old friend. I am some guy whose only claim to expertise in this field is that I figured out how to get my words posted to the internet.
I am going to bring the thing to court on the day it becomes possible for me to do so successfully. I am not going to lollygag. I am going to act with great dispatch. But I need freakin’ lawyers who will take the case on a contingency basis to proceed with the civil suits. And I need freakin’ prosecutors to proceed with the criminal actions.
I get your point. The cases should have been brought YEARS ago. I am 100 percent with you re the core point. I contacted lawyers in September of freakin’ 2002!
But it is not my call.
The Buy-and-Hold Crisis hurts everyone alive on the planet today. We all need to pull together. This is not a one-man job. I didn’t see that in September of 2002. I sure as heck see it today.
I will do my part to get this thing going as soon as humanly possible. You have my pledge.
But there are limits to what I can pull off. This is bigger than just me.
I will continue to seek people willing to help out. But I cannot do this alone. It is just too big.
So you are going to need to be a bit patient, whether you like the idea or not and whether that makes sense to you or not. It’s one of those darn realities that we all just have to accept.
I hope that helps a bit.
My best wishes to you and yours.