Many in the financial community are starting this week off with a look of amazement on their face. On last week it was revealed the one of Wall Streets most respected individuals (Bernard Madoff) allegedly duped investors out of more than $50 billion in a “ponzi” scheme.

A number of individuals and institutions (that might manage or invest in part of your portfolio) have come forth claiming they have lost thousands to millions and in some cases their entire nest egg.

Here is how officials allege that Bernard Madoff was able to get by with this scheme for decades. He would falsify reports from a secret money management service that he owned (separate from his other business ventures and stock transaction firm). This act resulted in the appearance that the money management service was more profitable that it actually was. He kept investors happy by taking cash from new investors to pay customers who wanted to cash in their holdings.

Well things caught up with him and he admitted on last week that his fund was “all just one big lie” and “finished” with “absolutely nothing.” Madoff also admitted that the fund was not solvent for years

Does this incident concern you?

What will you do (if anything) to ensure that the balance on paper is actually correct for your investments?