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Investor Furor Over '$50B Scam'
New York Post ^ | December 13, 2008 | Lukas I. Alpert and Bruce Golding

Posted on 12/14/2008 2:28:59 PM PST by CutePuppy

Panicked investors scrambled desperately yesterday to determine whether their life savings had been wiped out after a Wall Street legend allegedly admitted blowing as much as $50 billion in what is emerging as the largest Ponzi scheme in history.

Among several big-name investors who trusted former Nasdaq Chairman Bernard L. Madoff with their cash were New York Mets owners Fred Wilpon and Saul Katz, who may have lost as much as $500 million in the scheme, sources said.

New Jersey Sen. Frank Lautenberg also confirmed he had invested money from his charitable organization through the 70-year-old Madoff's company, though he did not say how much.

While the scope of countless other investors' losses remains unclear, it appears that most of the victims reside in New York and South Florida and were among Madoff's closest friends and business associates.

.....

The scandal - set off when his own sons turned him in to authorities - marks a dizzying fall from grace for Madoff, who lured investors with a reputation as a financial genius.

Working the so-called "Jewish circuit" of well-heeled Jews he met at country clubs on Long Island and in Palm Beach, and through his position on the boards of directors of several prominent Jewish institutions, he was entrusted with entire family fortunes.

"The guy was totally respected. He was a heymishe Jewish guy. He had sweet old ladies and he let their children in," said a Manhattan lawyer who invested with Madoff.

"This guy was dealing with all the rich Jews in Roslyn and the rich Jews in Palm Beach. This was passed down from family member to family member because he wouldn't open up to new people."

.....

(Excerpt) Read more at nypost.com ...


TOPICS: Business/Economy; Crime/Corruption; Extended News; US: Florida; US: New York
KEYWORDS: bernardmadoff; corruptdems; demcultofcorruption; democrats; fraud; madoff; nyfl; ponzi; ponzischeme; scam; wallstreet
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NY Post (business section) is on the case and has a series of articles on Madoff and consequences of this blow up. He was a big liberal Democrat donor and so were many of individuals who invested money in his fund for management.

Extracted links to other NYP articles:

Jewish Circuit's Faith Is Shaken
Florida Elite Loses Its Juice
Alarm Bells In 1999 Ignored
A Life Built On 'Bull'
Keystone Kop Of Wall St. [Spitzer]
Charity Trustee's A Bustee [Robert Lappin]

1 posted on 12/14/2008 2:28:59 PM PST by CutePuppy
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To: CutePuppy

Not that it’s relevant, but I wonder how many Obama supporters were caught up in this? I suspect quite a few based on the description of the investors.


2 posted on 12/14/2008 2:31:36 PM PST by tips up
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To: CutePuppy

Much related..

http://www.freerepublic.com/focus/search?m=all;o=time;q=quick;s=Madoff


3 posted on 12/14/2008 2:32:07 PM PST by xcamel (The urge to save humanity is always a false front for the urge to rule it. - H. L. Mencken)
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To: CutePuppy
in what is emerging as the largest Ponzi scheme in history.

What? Someone is finally unraveling Social Security?

4 posted on 12/14/2008 2:32:34 PM PST by Balding_Eagle (Overproduction;, one of the five top worries of the American farmer.)
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To: CutePuppy

I’m sure that there are plenty of real victims here, but I cannot help but chuckle at the people who have $5M+ and cannot live off a safe 5% return-but need to chase the BIG YIELDS...when I have not even one tenth of that amount and would never trust a person...no matter who with that money.


5 posted on 12/14/2008 2:33:16 PM PST by BobL
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To: CutePuppy

This still smells rotten to me. Think about it, a 70-year old man sets up his sons and probably every other living relative he has for life. He lives a life of luxury for the majority of his adult life then, as things start to unravel, he “confesses” to his sons who then turn him in. He is the only one to take a fall and everyone else does fine. If you have to take a fall it sounds like a pretty good deal. Someone still has enough left to put up his $10 million dollar bail. It seems like crime not only pays it pays well.


6 posted on 12/14/2008 2:36:09 PM PST by Oshkalaboomboom
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To: BobL

What happened to “Republicans are the party of the Rich?”

It won’t be too long before they’re asking for a Taxpayer bailout, and their biggest advocates in Congress will be leftist Democrats.


7 posted on 12/14/2008 2:36:24 PM PST by Boiling Pots (Anthony Kennedy: The 2nd most important person in Government 2009-2013. Pray for his good health.)
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To: tips up
Not that it’s relevant, but I wonder how many Obama supporters were caught up in this? I suspect quite a few based on the description of the investors.

I'm going to guess that a large majority of the people who lost money were Obama contributors, which is a bit of a silver lining. This may mean significantly reduced Democrat contributions.

8 posted on 12/14/2008 2:36:54 PM PST by PapaBear3625 (We used to institutionalize the insane. Now we elect them.)
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To: BobL
The guy running the scam is described as a Leftwingtard, and all the victims are his closest friends and associates and their relatives.

Gotta' be a bunch of Leftwingtards in there.

They'll all complain that George Bush let this happen. Can hardly wait until they start demanding Obama redo all the trades so they can get their money back like it was some kind of election in Florida.

Same crowd.

It's the water.

9 posted on 12/14/2008 2:37:57 PM PST by muawiyah
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To: Oshkalaboomboom
This still smells rotten to me. Think about it, a 70-year old man sets up his sons and probably every other living relative he has for life. He lives a life of luxury for the majority of his adult life then, as things start to unravel, he “confesses” to his sons who then turn him in. He is the only one to take a fall and everyone else does fine.

I wonder how his health is. It may be the case that he doesn't plan on being around by the time the trial finishes being dragged out.

I'm also wondering if his investors really lost money, or whether this was an elaborate laundering scheme to get money offshore (the IRS now taxes you on large money transfers out of the US)

10 posted on 12/14/2008 2:40:14 PM PST by PapaBear3625 (We used to institutionalize the insane. Now we elect them.)
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To: Oshkalaboomboom

I agree, to imagine the sons were in business with him for years and yet supposedly hadn’t a clue is, well, a bit of a stretch.


11 posted on 12/14/2008 2:40:19 PM PST by 9YearLurker
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To: tips up

Looks like a bailout for the rich Wall Street Libs.


12 posted on 12/14/2008 2:41:40 PM PST by mortal19440
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To: tips up

“New Jersey Sen. Frank Lautenberg also confirmed he had invested money from his charitable organization “

What the hell is this? Doesn’t that just makes his charity an investment company and not a charity? His attempt to avoid paying higher taxes?


13 posted on 12/14/2008 2:42:06 PM PST by 4rcane
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To: 4rcane
I'm no expert here, but I presume charities can invest their monies, as long as the proceeds stay in the charity and are used for actual charities.
14 posted on 12/14/2008 2:45:09 PM PST by tips up
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To: PapaBear3625

I wonder if any Ivy League Universities (Obama supporters) invested their endowments with this guy?


15 posted on 12/14/2008 2:46:04 PM PST by tips up
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To: CutePuppy

If you have money and do stupid things with it, your stupid.

If you give money to somone that does stupid things with it, your still stupid.

These people are not going to bed hungry, I have no sympathy. If they were mostly Dem supporters, well then I’m happy for thier loss. But they are still stupid.


16 posted on 12/14/2008 2:48:18 PM PST by ChetNavVet (Build It, and they won't come!)
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To: tips up

I think tha tis very relevent and I was thinking the same thing.The Dem’s are the big losers.


17 posted on 12/14/2008 2:48:20 PM PST by bilhosty
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To: Balding_Eagle

Albania had a pretty good sized Ponzi scheme go bad after the Commies collapsed, at least until Clinton bailed them out by giving them Serbia. But I’m not sure their whole country was ever worth $50B.


18 posted on 12/14/2008 2:48:59 PM PST by JohnBovenmyer
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To: CutePuppy
"admitted blowing as much as $50 billion in what is emerging as the largest Ponzi scheme in history. "

Ooops - he forgot about social security.

19 posted on 12/14/2008 2:51:02 PM PST by TPOOH (I wish I could have been Jerry Reed.)
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To: tips up

Looks like Democraps ripping off more Democraps.


20 posted on 12/14/2008 2:51:25 PM PST by jocko12
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