Swindling With The Stars

Ever wonder how stars like Kevin Bacon and Kyra Sedgwick (among many others) got snookered by con man Bernie Madoff? Maybe because there are too many people between the star and his money. Financial planner to the stars Michael Eisenberg explained to E!:

“Yes, there are lots of people working for celebrities, but they are all getting the same information, or lack of information, as everyone else. Doesn’t matter if there’s 1 eyeball or 40 eyeballs involved.”

It doesn’t help that Hollywood is a very small town where business is concerned and many stars are depending on the same pool of “experts” to manage their affairs. Eisenbergcontinued:

“If your best friend says this guy has an investment firm and he has been showing returns 10 to 12 to 13 percent on an annual basis—well, is this guy actually doing the investing? Does it matter?”

We can only hope that this mess will cause some stars to take a more hands-on approach to investing their money—while they still have the chance.

 

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