Bernard "Bernie" Cornfeld (17 August 1927 – 27 February 1995) was a prominent businessman and international financier who sold investments in US

mutual fund A mutual fund is an investment fund that pools money from many investors to purchase Security (finance), securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV in ...

s, and who was tried and acquitted for mismanagement of the

Investors Overseas Service Investors Overseas Services, Ltd. (IOS) was founded in 1955 by financier Bernard Cornfeld. The company was incorporated outside the United States with funds in Canada and headquartered in Geneva, Switzerland. In the 1960s, the company employed 25 ...

s (IOS).

Early life

Bernard Cornfeld was born in

Istanbul Istanbul is the List of largest cities and towns in Turkey, largest city in Turkey, constituting the country's economic, cultural, and historical heart. With Demographics of Istanbul, a population over , it is home to 18% of the Demographics ...

, in Turkey. His father was a

Romania Romania is a country located at the crossroads of Central Europe, Central, Eastern Europe, Eastern and Southeast Europe. It borders Ukraine to the north and east, Hungary to the west, Serbia to the southwest, Bulgaria to the south, Moldova to ...

Jew Jews (, , ), or the Jewish people, are an ethnoreligious group and nation, originating from the Israelites of ancient Israel and Judah. They also traditionally adhere to Judaism. Jewish ethnicity, religion, and community are highly inte ...

ish actor; his mother was from a Russian-Jewish family. They moved to the United States when Bernard was four years old; his father died two years later. The young

Brooklyn Brooklyn is a Boroughs of New York City, borough of New York City located at the westernmost end of Long Island in the New York (state), State of New York. Formerly an independent city, the borough is coextensive with Kings County, one of twelv ...

-raised Cornfeld worked after school each day in fruit stores and as a delivery boy. He had a

stammer Stuttering, also known as stammering, is a speech disorder characterized externally by involuntary repetitions and prolongations of sounds, syllables, words, or phrases as well as involuntary silent pauses called blocks in which the person who ...

as well as a natural gift for selling and when a schoolfriend's father died, the two of them used the

US$ The United States dollar (Currency symbol, symbol: Dollar sign, $; ISO 4217, currency code: USD) is the official currency of the United States and International use of the U.S. dollar, several other countries. The Coinage Act of 1792 introdu ...

3,000

insurance Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect ...

money to purchase and run an age and weight guessing stand at the

Coney Island Coney Island is a neighborhood and entertainment area in the southwestern section of the New York City borough of Brooklyn. The neighborhood is bounded by Brighton Beach to its east, Lower New York Bay to the south and west, and Gravesend to ...

funfair. He graduated from Abraham Lincoln High School and

Brooklyn College Brooklyn College is a public university in Brooklyn in New York City, United States. It is part of the City University of New York system and enrolls nearly 14,000 students on a campus in the Midwood and Flatbush sections of Brooklyn as of fall ...

. He initially worked as a social worker, but then switched to selling mutual funds for an investment house.

Investors Overseas Services

In the 1960s, Cornfeld formed his own mutual fund sales company,

s (IOS), with principal offices in

Geneva, Switzerland Geneva ( , ; ) ; ; . is the second-most populous city in Switzerland and the most populous in French-speaking Romandy. Situated in the southwest of the country, where the Rhône exits Lake Geneva, it is the capital of the Republic and Ca ...

, although it was incorporated in Panama. Although the executive headquarters were in Geneva, the main operational offices of IOS were in

Ferney-Voltaire Ferney-Voltaire () is a commune in the Ain department in the Auvergne-Rhône-Alpes region of eastern France. It lies between the Jura Mountains and the Swiss border; it forms part of the metropolitan area of Geneva. It is named for Voltaire, ...

, France, across the French border from Geneva. During this period,

Diane von Furstenberg Diane may refer to: People *Diane (given name) Film * ''Diane'' (1929 film), a German silent film * ''Diane'' (1956 film), a historical drama film starring Lana Turner * ''Diane'' (2017 film), a mystery film directed by Michael Mongillo * ''D ...

worked for Cornfeld as a receptionist. Cornfeld decided that mutual funds should take their fees from the profits they made for their investors, not just a percentage of the money invested. The IOS system collapsed in 1970. Cornfeld was arrested in Switzerland in 1973 and sentenced to 11 months in preventive prison; however, he was ultimately acquitted in 1979. Having kept part of his earnings, he was able to maintain a luxurious (albeit less ostentatious) lifestyle until he died in 1995.

Other business ventures

Following his acquittal, Cornfeld settled in

Beverly Hills, California Beverly Hills is a city located in Los Angeles County, California, United States. A notable and historic suburb of Los Angeles, it is located just southwest of the Hollywood Hills, approximately northwest of downtown Los Angeles. Beverly Hills ...

, where he ingratiated himself to film industry circles. For a period of time until 1992, he lived in the Grayhall mansion, built in 1909 and at one time leased by

Douglas Fairbanks Douglas Elton Fairbanks Sr. (born Douglas Elton Thomas Ullman; May 23, 1883 – December 12, 1939) was an American actor and filmmaker best known for being the first actor to play the masked Vigilante Zorro and other swashbuckler film, swashbu ...

. Cornfeld numbered among his friends

Elizabeth Taylor Dame Elizabeth Rosemond Taylor (February 27, 1932 – March 23, 2011) was an English and American actress. She began her career as a child actress in the early 1940s and was one of the most popular stars of classical Hollywood cinema in the 19 ...

Michelle Phillips Holly Michelle Phillips ( Gilliam; born June 4, 1944) is an American singer, songwriter and actress. Described by ''Time (magazine), Time'' magazine as the "purest soprano in pop music", she rose to fame in the mid-1960s with the folk rock vocal ...

Warren Beatty Henry Warren Beatty (né Beaty; born March 30, 1937) is an American actor and filmmaker. His career has spanned over six decades, and he has received an Academy Award and three Golden Globe Awards. He also received the Irving G. Thalberg Memor ...

Laurence Harvey Laurence Harvey (born Zvi Mosheh Skikne; 1 October 192825 November 1973) was a Lithuanian-born British actor and film director. He was born to Lithuanian Jewish parents and emigrated to Union of South Africa, South Africa at an early age, before ...

Victor Lownes Victor Aubrey Lownes III (April 17, 1928 – January 11, 2017) was an executive for HMH Publishing Company Inc., later known as Playboy Enterprises, from 1955 through the early 1980s. Soon after he met Hugh Hefner in 1954, Hefner founded ''Playbo ...

Hugh Hefner Hugh Marston Hefner (April 9, 1926 – September 27, 2017) was an American magazine publisher. He was the founder and editor-in-chief of ''Playboy'' magazine, a publication with revealing photographs and articles. Hefner extended the ''Playboy ...

Richard Harris Richard St John Francis Harris (1 October 1930 – 25 October 2002) was an Irish actor and singer. Having studied at the London Academy of Music and Dramatic Art, he rose to prominence as an icon of the British New Wave. He received numerous a ...

Al Capp Alfred Gerald Caplin (September 28, 1909 – November 5, 1979), better known as Al Capp, was an American cartoonist and humorist best known for the satirical comic strip ''Li'l Abner'', which he created in 1934 and continued writing and (w ...

Tony Curtis Tony Curtis (born Bernard Schwartz; June 3, 1925September 29, 2010) was an American actor with a career that spanned six decades, achieving the height of his popularity in the 1950s and early 1960s. He acted in more than 100 films, in roles co ...

Howard Sackler Howard Oliver Sackler (December 19, 1929 – October 12, 1982) was an American screenwriter and playwright who is best known for having written '' The Great White Hope'' and its film adaptation. ''The Great White Hope'' enjoyed both a successful ...

, John Heyman and Simon Reuben. In 1972, Cornfeld bankrolled the Paradise Ballroom, partnering with New York showman

Jerry Brandt Jerry Brandt (January 29, 1938 – January 16, 2021) was an American entrepreneur, impresario, agent, manager, promoter, and club owner who was active since the 1960s. He is known for discovering Carly Simon and serving as her first manager, as we ...

. The club, an attempt by Brandt to re-create his New York disco, ''The Electric Circus'' in Los Angeles was a failure, and Cornfeld closed the business. Grayhall mansion doubled as the home of rock star John Norman Howard (

Kris Kristofferson Kristoffer Kristofferson (June 22, 1936 – September 28, 2024) was an American singer, songwriter, and actor. He was a pioneering figure in the outlaw country movement of the 1970s, moving away from the polished Nashville sound and toward a m ...

) in the 1976 version of '' A Star Is Born'' starring

Barbra Streisand Barbara Joan "Barbra" Streisand ( ; born April 24, 1942) is an American singer, actress, songwriter, producer, and director. With a career spanning over six decades, she has achieved success across multiple fields of entertainment, being the ...

. At the age of 60, Cornfeld had an affair with the then 19-year-old

Heidi Fleiss Heidi Lynne Fleiss (born December 30, 1965) is an American former madam. She ran an upscale prostitution ring based in Los Angeles and is often referred to as the "Hollywood Madam". Fleiss also formerly worked as a columnist and was a television ...

. By the 1990s, Cornfeld had developed an obsession for

health food A healthy diet is a diet that maintains or improves overall health. A healthy diet provides the body with essential nutrition: fluid, macronutrients such as protein, micronutrients such as vitamins, and adequate fibre and food energy. A hea ...

s and

vitamins Vitamins are organic molecules (or a set of closely related molecules called vitamers) that are essential to an organism in small quantities for proper metabolic function. Essential nutrients cannot be synthesized in the organism in suff ...

, renounced

red meat In gastronomy, red meat is commonly red when raw (and a dark color after it is cooked), in contrast to white meat, which is pale in color before (and after) cooking. In culinary terms, only flesh from mammals or fowl (not fish) is classified ...

and seldom drank alcohol. In his last years he was a chairman of a land development firm in

Arizona Arizona is a U.S. state, state in the Southwestern United States, Southwestern region of the United States, sharing the Four Corners region of the western United States with Colorado, New Mexico, and Utah. It also borders Nevada to the nort ...

and also owned a real estate company in Los Angeles.

Death

Bernard Cornfeld suffered a stroke and died of

MRSA Methicillin-resistant ''Staphylococcus aureus'' (MRSA) is a group of gram-positive bacteria that are genetically distinct from other strains of ''Staphylococcus aureus''. MRSA is responsible for several difficult-to-treat infections in humans. ...

on 27 February 1995 in London, England. He was tended to by his 17 year old daughter, Jessica.

References

Sources

*'' The Bernie Cornfeld Story'' by Bert Cantor, (Lyle Stuart, Inc., 1970). * With title quoting Cornfeld's celebrated pitch – '' Do You Sincerely Want To Be Rich?'' by Charles Raw with Godfrey Hodgson and Bruce Page (Originally published by

André Deutsch André Deutsch (15 November 1917 – 11 April 2000) was a Hungarian-born British publisher who founded an eponymous publishing company in 1951. Biography Deutsch was born on 15 November 1917 in Budapest, Hungary, the son of a Jewish dentist ...

in 1971, ; reprinted by the "

Library of Larceny A library is a collection of books, and possibly other materials and media, that is accessible for use by its members and members of allied institutions. Libraries provide physical (hard copies) or digital (soft copies) materials, and may be a p ...

", 2005, )

External links

Article analyzing the workings of IOS and Cornfeld's career
*

''

Time Time is the continuous progression of existence that occurs in an apparently irreversible process, irreversible succession from the past, through the present, and into the future. It is a component quantity of various measurements used to sequ ...

''. (16 August 1993).
"The Predator's Fall"
''Time''. (19 June 1995).

''Time''. (29 October 1979). {{DEFAULTSORT:Cornfeld, Bernard 1927 births 1995 deaths Abraham Lincoln High School (Brooklyn) alumni American money managers American people of Romanian-Jewish descent American people of Russian-Jewish descent Brooklyn College alumni Columbia University School of Social Work alumni Turkish emigrants to the United States American confidence tricksters 20th-century American businesspeople