Bernard "Bernie" Cornfeld

Early Life and Education

Bernard Cornfeld was born on August 17, 1927, in Istanbul, Turkey, to Leon Cornfeld, a Romanian-Jewish theatrical producer, and Sophia Cornfeld, a Russian émigré. His family immigrated to the United States in the early 1930s, settling in Brooklyn, New York, where Cornfeld grew up in a modest household during the Great Depression. He attended Abraham Lincoln High School, excelling in debate and showing a flair for persuasion. In 1948, he graduated from Brooklyn College with a bachelor’s degree in psychology, later pursuing graduate studies in social work at Columbia University (a well known CIA recruiting school) but dropping out to chase financial ambitions. Cornfeld’s charismatic personality, sharp intellect, and knack for sales shaped his early career, as detailed in The Great American Confidence Game by Arthur Herzog.

Early Career and Investors Planning Corporation (1953–1955)

In the early 1950s, Cornfeld worked as a social worker in Philadelphia but found the role unfulfilling. In 1953, he joined Investors Planning Corporation (IPC), a New York-based mutual fund distributor, as a salesman. At IPC, he honed his high-pressure sales tactics, pitching mutual funds like the Dreyfus Fund to middle-class Americans with promises of wealth. His success, driven by a charismatic pitch and psychological insight, made him a top performer. By 1955, frustrated by IPC’s domestic focus and U.S. regulatory constraints, Cornfeld moved to Paris, seeking untapped markets for mutual fund sales among U.S. expatriates.

Founding of Investors Overseas Services (1956–1970)

In 1956, Cornfeld founded Investors Overseas Services (IOS) in Paris, incorporating it in Geneva, Switzerland, to exploit banking secrecy and avoid U.S. Securities and Exchange Commission (SEC) oversight. IOS targeted non-U.S. clients, particularly American GIs, diplomats, and European professionals, offering offshore mutual funds like the Fund of Funds, which invested in other funds for diversification.

His slogan, “Do you sincerely want to be rich?” and a 25,000-strong sales force fueled rapid growth. By 1969, IOS managed $2.5 billion in assets (equivalent to $20 billion in 2025), with 1 million investors across 100 countries, per The New York Times.

Cornfeld’s flamboyant lifestyle—owning a French castle, private jets, and dating models like Victoria Principal—made him a celebrity financier. IOS’s board included high-profile figures like Prince Bernhard of the Netherlands, later implicated in a 1976 Lockheed Bribery Scandal, per The Guardian. The company’s pyramid-like structure, using new investor funds to pay dividends, and speculative investments in real estate and oil, drew scrutiny. By 1970, a global stock market slump and regulatory crackdowns in Europe and the U.S. triggered a liquidity crisis, with IOS unable to meet investor withdrawals.

Vesco Takeover and IOS Collapse (1970–1973)

In 1970, Robert Vesco, a New Jersey financier, staged a hostile takeover of IOS, acquiring control for less than $5 million as the company faltered. Cornfeld, ousted from leadership, was arrested in Geneva in May 1970 on fraud charges related to IOS’s mismanagement. He spent 11 months in a Swiss jail before being acquitted in 1975, per The Washington Post. Vesco looted $224 million from IOS funds, transferring assets through shell companies, collapsing the company by 1973 with investor losses estimated at $500 million, according to SEC filings cited in The New York Times. The scandal, detailed in Vesco: From Wall Street to Castro’s Cuba by Arthur Herzog, tarnished Cornfeld’s reputation and the offshore finance industry.

Later Life and Ventures (1973–1995)

After his release, Cornfeld returned to Beverly Hills, California, living modestly compared to his IOS heyday. He attempted to rebuild his fortune through ventures like Grayhall, a real estate and film production company, but none matched IOS’s scale. In the 1980s, he invested in European health spas and biotech startups, often facing legal battles over unpaid debts. Cornfeld maintained a playboy image, living with multiple girlfriends in a Beverly Hills mansion, but struggled financially, per The Telegraph (1995). In 1994, he was diagnosed with non-Hodgkin’s lymphoma, which weakened his health.

Cornfeld died of a heart attack on February 27, 1995, in London, England, at age 67, while visiting his companion Catherine D’Amico. He was survived by D’Amico and an adopted daughter, Jessica Cornfeld, from a previous relationship with Lorna St. Aubyn. His estate, valued at less than $100,000, reflected his diminished wealth, per The Independent. A memorial service in London drew former IOS colleagues, underscoring his lasting, if controversial, influence.

Personal Life

Cornfeld never married but had numerous high-profile relationships, including with Heidi Fleiss’s mother, Elisa, and actress Alana Stewart. His adopted daughter, Jessica, was raised in Europe and the U.S. Known for his charm, wit, and lavish parties—often at his Geneva villa or Paris castle—Cornfeld cultivated a larger-than-life persona, blending business with pleasure. His psychological training informed his sales tactics, manipulating investor aspirations, as noted in The Billion Dollar Bubble by Robert Heller.