The Cult of Celebrity and Bernie Madoff

From legendary investor and trusted advisor to scam artist and thief in a New York minute. How did Bernie Madoff -- a man with star-studded connections and a venerable clientele -- pull off the biggest Ponzi scheme in recent financial history, one that has virtually destroyed fortunes and cratered scores of philanthropic organizations without anyone suspecting? In a phrase: the cult of celebrity.

A simplistic answer, perhaps. But the main earmark is there: the willingness of intelligent and sophisticated people to suspend belief that someone like Madoff could ever possibly do something like this. Someone with his reputation and history and character demonstrated over a career spanning decades.

"And Madoff is an honourable man."

Yes, in many ways, Madoff is a modern-day Brutus. One who "appears" honest and trustworthy but who hides under that cloak. The lies and larceny that must have been committed by Madoff over the years reveal a character devoid of protracted decency. A self-aggrandizer, a poseur, always with malevolent intention to perpetuate his scheme regardless of his avuncular veneer.

People were fooled because they wanted to believe that their friend and trusted advisor was who he appeared to be without really scrutinizing him as they would anyone else with whom they had entrusted their financial security, status, wealth, charitable legacies and lifetime of work. One doesn't do that lightly. In fact, one doesn't do that except with someone you would entrust your very life.

For some, greed may have been a motivating factor. The consistent and inexplicable out-sized returns. For others, the status of being worthy to touch the cloth -- to be privileged enough to invest with Madoff. For the majority, possibly some of the above, but mostly an abiding faith in the goodness of Madoff.

The Consequences of Madoff Cultism

When we elevate anyone to nearly cult-like status, when we treat celebrities, athletes, business leaders, politicians, religious advisors and others in an exalted manner and when we lose sight of rationale thought, we are planting the seeds for the Bernie Madoffs of the future to emerge.

Madoff took more than peoples' money; he took a part of their souls and humanity and their fundamental belief in the virtues of trust, honesty, integrity and friendship and in the goodness of people.