10 Billionaires Who Lost All Their Money And Went Broke
She dropped out of Stanford University to start a company at the age of 19. It soon became one of Silicon Valley’s most promising startups and by 2014 she had $400 million in investment money. She had a net worth of $4.5 billion. Unfortunately, her company was dealing with diagnosing and monitoring diseases and administering drugs. One check by the FDA discovered the unprofessional practices of the company. It was declared that the company was a ‘massive fraud’ and she had to return the investor’s money.
This German tycoon began his career in a drugstore in 1975. But in just two years he had 100 stores running under him. By 2011 that number rose to 14,000. This empire was worth $10 billion and his personal wealth was $4 billion. He wasn’t too flashy with his money but did indulge in owing a few expensive sports cars which he had a collection of.
Things began to fall apart in 2011 when competition from rival chains stopped his expansion in their tracks. There were also accusations of fraud and illegally underpaying employees. This came as a massive shock to him, his investors and his entire empire. He had to file for bankruptcy in 2012. He had to pay around close to double his own personal wealth to avoid jail time.
He will forever be known as the man who ran the largest Ponzi scheme in world history, and the largest financial fraud in U.S. history. He began in stock markets where his quick wit and smarts led him to earn around $100 million a year in the late 80s. This is where he started his own firm and via his smooth talk, he got investors to investor around $300 million into his firm.
15The big reveal
It was soon revealed that everything was entirely fabricated. Madoff has created a system where he used new investors to pay back the existing ones. It was in December of 2008 when the media exposed his Ponzi scheme and the authorities got involved. It is reported that he made $20 billion of this entire scheme. He was sentenced to 150-years in jail.