Editing Investors Overseas Services (section)

==Peak and Expansion==
(1965–1970) Global Reach: IOS established subsidiaries like [[Investors Bank Luxembourg]]and operated in markets from Germany to Hong Kong. Its salesmen, often young, used aggressive tactics, promising 20–30% annual returns, which drew scrutiny from European regulators. By 1969, IOS had 1 million investors, with 70% of funds from Europe and Latin America.

Corporate Structure: Cornfeld surrounded himself with a colorful cast, including Edward Cowett, a lawyer who structured IOS’s complex fund network; Allen Cantor, a sales director; and Stanley Goldberg, a financial strategist. The company’s board included figures like [[Prince Bernhard of the Netherlands]], whose involvement in IOS led to a 1976 Lockheed bribery scandal, per The Guardian. Prince Bernhard is connected to many aspects of [[Operation Gladio]] such as [[World Wildlife Fund]], [[Le Cercle]], etc.

Innovations and Risks: IOS pioneered offshore mutual funds, bypassing U.S. securities laws, but its funds were overvalued, with speculative investments in real estate, oil, and minerals. The Fund of Funds charged high fees (up to 9% upfront), reducing investor returns. By 1970, IOS’s reliance on new investor cash to pay dividends resembled a Ponzi scheme..