Why would celebrities invest in Madoff's pyramid scheme?

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thecityofwonder

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I read somewhere that one should be wary of ponzi pyramid schemes and thus avoid them like the plague. So why would celebrities invest in them? I read some celebs and producers in Hollywood lost a lot of money as a result of investing with Madoff.
I thought that celebs with accountants would be savvy to such schemes.
 
It's not like they were told it was a pyramid scheme. None of those investors thought they were being scammed.

Madoff had a good reputation on Wall Street. He was the former chairman of the NASDAQ stock exchange. People thought he was running a legitimate investment house.
 
Guess what, Madoff didn't advertise it as a Ponzi scheme.

They invested because they wanted 10% returns every year.
 
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