Behind the Scenes of the Madoff Scandal with a Trader on the Inside | Andrew Cohen

Excess Returns

In this episode of Excess Returns, Matt Zeigler sits down with Andrew Cohen, who shares his extraordinary journey from Goldman Sachs trader to working directly with Bernie Madoff and ultimately becoming a victim of history's largest Ponzi scheme. Now a respected finance professor, Cohen offers unique insights into Wall Street's trading culture, the shock of Madoff's fraud, and how he rebuilt his life in academia after losing almost everything.

Topics Covered:

Andrew's early career at Goldman Sachs and how basketball gambling on the trading floor taught him market-making skills

The trading operations and technology at Bernard L. Madoff Investment Securities in the early 1990s

Working dynamics with Bernie Madoff's sons, Mark and Andy, and office politics

How Andrew was invited to invest in Madoff's "exclusive" fund

Andrew's decision to leave Wall Street at the height of his success

The devastating moment Andrew learned about Madoff's arrest and the Ponzi scheme

The additional ordeal of facing clawback lawsuits after losing his investment

Transitioning to academia and finding a more fulfilling career path

Lessons for investors and finance students about risk, technology, and communication