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Bernie Madoff ..

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Madoff's sentencing is fast approaching as I type this, and most are hoping that he will never be released from jail, but I have to ask a few questions:


- what allowed Madoff to get away with fraud over more than 4 decades ? Even after the whistle was blown, authorities dragged their feet for more than 12 months


- if he had been as smart as he thought he was, he could have used the downturn to report big 'losses' - no one picked up the Ponzi scheme till he was the only regular blip above the flat line that Wall St had become.


- many of his victims were victims of their own greed : they gleefully signed up for hedge funds that offered double-digit returns when any respectable financial adviser would have stamped such funds 'high risk'.


I want to see Madoff get whats coming to him,but some of the fist waving is pathetic. If you bet your life savings on a game of blackjack, would you want to see the croupier hanged when you lost ? Hard to say how many other Madoffs are waiting in the wings, but we are kidding ourselves if we think 16% pa is realistic in a bear market. The system let these people down, no argument, but they need to accept some responsiblity for their own actions, IMO.

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The Ponzi scheme he ran lasted longer than most which is why some people were taken in by it,also the returns he gave to clients whilst high ( 12% pa )were not outrageously so.Many of his investors were charities and foundations who failed to ask even simple questions as to how he achieved the ROI which remained steady despite market conditions.Those fund managers who carried out due diligance soon realised there was something suspicious about Madoff....in fact he was reported to the SEC several years before the collapse but they didnt bother to investigate....

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Yep - his 'front men' were actually busted some years before it all came apart for Madoff, but he got others onboard. Some of the reasoning that industry insiders gave in the expose I saw sounded bloody flimsy - when asked why they complied with his bizarre conditions, the response was along the lines of 'thats just the way Bernie wanted it - it was his black box'. How about duty of disclosure and transparency ?


The 16% figure is from the same doco, and that was what the high rollers were promised. The most amazing character in the whole saga was the guy who sat down one afternoon, after being asked by a friend to run the numbers on Madoff's returns, and immediately declared that it had to be a Ponzi scheme.


My understanding is that Madoff was still Wall St royalty at the time, and Markopolos sounds like a complete nerd, but the SEC could have at least looked over his evidence. Might have saved someone from ruin.



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Well, I don't have the wealth to be a stock market junkie.


But I do have friends that are.


One friend I know, views the stock market and some of his stocks multiple times a day. And his stock broker calls frequently. All way beyond me.


One time he comes to me and states a 'sure deal'. Do I have $10,000 or $20,000 to invest. I will double my money in a few weeks/months.


Long time ago when market was stable.

You see, his sister is the personal secretary for a CEO or a large multi-national. This NA company is in negotiations to be bought by a larger UK company. The company, will, in fact, be bought by this UK company. She has seen all the agreements. It's a 'done' deal (just need the signatures). Buy now and this stock will double. That is the 'inside' word.


No, I didn't have to funds to invest. But if I did, I probably would have. I like 'insider' information.


Months go by. I ask. What happened to the 'stock' deal and his sisters company.


Guess what. The deal fell thru AND the stock went down. He lost real money (actually he inherited the money but it still was real).

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he had an army of clerks working on the secret 17th floor of his building that had very restricted access .they were sending out the bogus sales receipts to the clients to keep them all happy.

so theres lots more people in on the scam .

and his wife and family all in on the scam

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Jun 29, 2009

Madoff sentenced to 150 years - or 145 more than Ponzi


MAdoff 29 Charles_Ponzi_449351a

Bernie Madoff, the mastermind behind the world’s largest Ponzi scheme, has been jailed for 150 years – which is 145 years more than the original Charles Ponzi got.


The swindler who gave his name to the pyramid investment trick was sentenced to just five years after he pleaded guilty in 1920. Ponzi was released after three and a half years – or serving 70 per cent of his sentence. If Madoff gets the same treatment, he could be wandering around Manhattan’s upper east side in 105 years time.


For more on the sentencing, including details of Madoff’s apology and his victim’s unforgiving response, see The Times, Bloomberg and The Boston Globe.


Posted by Michael Herman on June 29, 2009 in Madoff fraud |

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Yep, 150 years and stripped of his fortune. Wont be at all surprised if he tops himself, but he is the symptom, not the disease. The disease is a system that makes a lot of noise about transparency, financial prudence and regulatory oversight, then worships anyone who pulls a rabbit from a hat, partioularly when the economy is in a hole. Who really cares how they pull that rabbit out of that hat, or whether snake oil is being sold to schmos in Dogpatch, Arkansas - the important thing is that we are getting RETURNS, right ? Christ, Madoff didnt even have a license to invest other people's money, but he got away with it for over 40 years ...


Gordon Gekko would be proud.

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