PUTTING YOUR “SELF” IN THE SELF-DIRECTED IRA KAAREN HALL
case was dismissed in 2010 by the U.S. District Court in Colorado, when IRA Holders invested with Bernie
Madoff and lost their funds. They tried to come after the custodian of the self-directed IRAs, but the court found
that “The various IRA Agreements contain clearly-stated and and explicit provisions that indemnify the Trustee
Defendants from liability resulting from any claims arising from the accounts at issue”.
In an appeal from the Circuit Court of Cook County, in June of 2012, the court gave the opinion that the
“Defendant bank owed plaintiffs no fiduciary duty as trustee to investigate and verify the true value of a thirdparty investment fund, later alleged to be a "Ponzi" scheme, where the individual retirement account agreement
between the bank and plaintiffs expressly released the bank from liability for any losses and stated the bank had
no duty to investigate the actual market value of plaintiffs' investments in the fund”.
Self-directed IRA companies don’t provide financial or investment advice. They don’t endorse any particular
investment and they aren’t to blame if the investment turns out to be unprofitable or a total loss. This is why it is
so very crucial for a self-directed IRA holder to do their due diligence on their investments before they self-direct.