$70 million was a lot of money for me at the time. And I couldn't sleep at night until I gave back every dollar to the people who gave it to me.
I was running the sort of fund where people gave me money and then I invested it in other funds. The only problem was, I couldn't figure out what funds were total scams and what funds were legit. In retrospect, I think about nine or 10 of the 12 funds I was invested in were total scams.
For instance, and this is all in the SEC filings, one fund manager stole $10 million from his fund that I was invested in. He then paid a $50,000 fine when he was caught.
Now he's nowhere. I mean, he's somewhere, but I can't find him. We're Facebook friends but the last update was him sitting on a beach and it was updated about five years ago.
My investors were furious. They had been making money every month with me. They didn't want their money back.
When I told them I was going to give them their money back, with profits, they were so upset many of them didn't want me to take a fee.
In every business I had ever started, even ones that had totally failed, I had kept good relations with the investors.
Except for this one. Not a single relationship survived even though I had made money for everyone.
When you can't figure out how you are making money, it's time to change.