10 Billionaires Who Lost All Their Money And Went Broke
: Every one of us envies the life of a billionaire. They are rich beyond our imagination and never have to worry about saving for the future. Even their children and grandchildren don’t have to worry about money. We often think that a billionaire could never go bankrupt.
But, that’s the point of this article. Billionaires are human too. They make mistakes just like the rest of us. But, when we make financial mistakes we lose a few hundreds or thousands but when a billionaire makes a financial mistake they stand to lose millions.
1Phillip R. Bennett
Phillip R. Bennett was the CEO of New York-based brokerage firm Refco. While working as the CEO he made a ton of money for himself and lived a luxurious life. But he started noticing some irregularities in his company. He saw that the company was losing hundreds of millions in the form of unpaid loans. He found loopholes in the management contract and made them effectively disappear.
2He got caught
Bennett was incredibly cleaver and thanks to his knowledge he was able to amass a personal fortune of around $1.5 billion. This helped him live an even more luxurious life with 7 Ferraris, a $20 million plane, etc. Unfortunately, the authorities discovered were able to identify the loophole and the unpaid loans. Bennett had to sell everything he owned to pay it all back and his firm went bankrupt. He was also sentenced to 16-years in prison for his actions.
Allen Stanford began his journey to being a billionaire in the 1980s. He launched Stanford International Bank in 1985 which helped him constructed a global financial empire. He was known to show off his wealth by owning a $100 million fleet of private jets. His $20 million cricket tournament cash prizes are also well known. It was soon revealed that he earned all this money via bribery, money laundering, and political manipulation.
4The big reveal
In 2009 it was revealed that Stanford Financial Group was nothing but a Ponzi scheme. He had to repay nearly $7 billion to the banks. This revelation came as a huge shock to his investors who were had just lost millions of dollars. He was sentenced to 110-years in prison at the age of 69.
She was a belly-dancer who married television mogul John Kluge but divorced in 1990. This left her with a huge settlement of around $1 million every year, along with a $100 million home. She began her lavish lifestyle not thinking about the future and soon bought a wine company. Things did not go to plan and bad decisions along with the 2008 recession saw the once billionaire now bankruptcy in 2011.