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supervillain
Now THIS is how you commit fraud!
Bernard Madoff, a quiet force on Wall Street for decades, was arrested and charged on Thursday with allegedly running a $50 billion Ponzi scheme in what may rank among the biggest fraud cases ever.
The former chairman of the Nasdaq Stock Market is best known as the founder of Bernard L. Madoff Investment Securities LLC, the closely-held market-making firm he launched in 1960. But he also ran a hedge fund that U.S. prosecutors said racked up $50 billion of fraudulent losses.
Madoff told senior employees of his firm on Wednesday that "it's all just one big lie" and that it was "basically, a giant Ponzi scheme," with estimated investor losses of about $50 billion, according to the U.S. Attorney's criminal complaint against him.
A Ponzi scheme is a swindle offering unusually high returns, with early investors paid off with money from later investors.
On Thursday, two agents for the U.S. Federal Bureau of Investigation entered Madoff's New York apartment.
"There is no innocent explanation," Madoff said, according to the criminal complaint. He told the agents that it was all his fault, and that he "paid investors with money that wasn't there," according to the complaint.
read more here
Holy damn.
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Senior Member
Horrible! As if the financial world haven't gone through enough the last year...
He was released after posting a $10 million bond secured by his Manhattan apartment.
That's how you do it when you're in the financial sector  A bond to raise money to get out of jail... I wonder who's willing to give this guy a loan now though.
The SEC said it appeared that virtually all of the assets of his hedge fund business were missing.
The strange thing is that, even though he has caused losses of between 17 and 50 bn USD (I'm a bit confused by the article regarding this number), he gets a fine of 5 million USD. And even though he has probably received tens or hundreds of millions in salaries during these years, they can't take it back since the hedge fund (I assume) is an independent financial entity.
It sucks for him that he probably has to spend the rest of his life in jail though...
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Hood Rich
They can take it back if he has it and they prove that he made the money through an illegal practice. But, they can't take money from anyone that made money on their investment with him (to pay those who lost for instance).
"We don't estimate speeches." - CBO Director Doug Elmendorf
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Senior Member
Yeah in this case I guess they could increase the fine since he has done something illegal...
Last edited by MagnusVS; 12-12-2008 at 07:18 AM.
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Flashkit historian
Cashes in bonds tucked under the matters makes bond
Relocates to Dubai
Has billions in Swiss bank account unreported.
He's been this since 1960 and no one got wise?
What do we pay the SEC for if they can't do thier job?
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He got caught..seems like that's how you DON'T commit fraud....
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Chaos
 Originally Posted by theRiver
He got caught..seems like that's how you DON'T commit fraud....
yeah after 50 years and possibly as much as 50 billion dollars.
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Haha, that sucks man. He should have dropped out sooner... Further backs up my theory: at this present value of the dollar, if you want more money after you've got 2 million dollars, you too greedy.
e
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Senior Member
Originally Posted by Frets
Cashes in bonds tucked under the matters makes bond
Relocates to Dubai
Has billions in Swiss bank account unreported.
He's been this since 1960 and no one got wise?
What do we pay the SEC for if they can't do thier job?
Frets, I think someone sat on your keyboard and hit "post"
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Flash Incompetent
First suicide over the scandal has occured:
http://online.wsj.com/article/SB1230...gn2008_mostpop
List of so far victims:
http://s.wsj.net/public/resources/do..._20081215.html
Seems he's showing no remorse from what I've read.
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supervillain
He has no reason to show remorse. He's in house arrest, surrounded by the things that he acquired by pulling this scam.
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Flash Incompetent
I dunno, I'd think there'd be some remorse, knowing you made such a negative impact that you will most likely go down in history books for the awful things you did. Or maybe when you're sons refused to help bail you out. It boggles my mind that he wouldn't.
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supervillain
Why? He's lived a damn good life on a lie and a cheat. He could die at any moment without remorse. And that's probably what's going to happen.
You're that rich, **** remorse. You're just going to do a little bit of time in a federal minimum security where he's more than likely able to compare it to Club Med than Riker's Island.
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supervillain
Seems like:
Kevin Bacon
Former Gov. Spitzer
Steven Spielberg
Olympic Comittee
Mort Zuckerman
Jeffrey Katzenburg
Fred Wilpon They all got taken by Madoff. See it here...
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