This episode of Swindled may contain graphic descriptions or audio recordings of disturbing

events which may not be suitable for all audiences.

This optimism raised higher by Averis as hot air raises a balloon rose until 1969.

By then it had produced Bernard Cornfeld and an outfit called Investors Overseas Services.

Bernie Cornfeld is an American success story.

Born in Istanbul and raised in Brooklyn, Bernie started his career as a cab driver, became

a social worker and then made a fortune as a mutual fund tycoon.

The mutual fund industry was taking off in the late 1950s following the Great Depression

the average investor had become more risk averse and diversified.

The pulled assets of a mutual fund were the perfect response.

Bernie Cornfeld recognized which way the wind was blowing but he took a good idea and

made it even better.

In 1956 Bernie moved to Paris and established an offshore mutual fund, meaning that his

mutual fund would invest in American mutual funds but would be free from the annoyances

of US regulations and taxes.

Ex-pats, service members and foreign nationals did not hesitate to buy in.

Over the next decade Cornfeld's Switzerland-based company Investor Overseas Services or IOS became

a two and a half billion dollar financial empire.

There were over one million shareholders in 120 different countries.

IOS oversaw 60 banking insurance and real estate subsidiaries all outside the law and the

palm of Uncle Sam.

Bernie Cornfeld called it, quote, people's capitalism.

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