There are a couple of lessons learned from the Bernie Madoff scam that business persons can make sure they are observing. Bernie and his wife made a couple of mistakes. (Well, maybe more than a couple.) They were just flat out illegal in most of what they did, but they made mistakes that you can avoid when you are trying to protect your assets. Every businessperson needs to pay attention to these basic rules. The rules are easily violated, because they “don’t apply to me.” Yah sure!!!

When structuring the business, don’t have the husband be the president of the corporation and the wife be the secretary, or visa versa. One spouse ONLY is the officer and director of the family business. The other spouse can work as an employee in the business, but they never fill an official role. They aren’t even the office manager. They are just an employee. Yes, they can counsel and direct, all night long in bed, but they are not the head honcho in the office.

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Bernie Madoff went to jail, but his wife is still living in the big penthouse. There is still a good possibility she will spend some time in a cell, but it won’t be because she owns lots of assets. Her problem is she was working in the business and has committed the same types of illegal acts as her husband. There are a whole bunch of asset protection lessons that can be learned from the Madoff disaster. There are several on the investor’s side of the fence and a number on the business owner’s side of the fence.

As you read the next couple of paragraphs, I know you will say, “Duh, Phillips! Everybody knows your little lessons.” I am sure you already know the lessons. But, please evaluate your situation. Stand back and take a long unemotional look at your situation from a third party’s perspective. Yes, the lessons are stupidly simple, but they were overlooked by thousands of bright people that lost billions and billions. They lost their life’s savings, because they ignored the rules.

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