Investor Furor Over '$50B Scam'

New York Post ^ | December 13, 2008 | Lukas I. Alpert and Bruce Golding

[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."

.....

[org.whodat]

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.

BINGO!!!!! LOL

[varon]

Employees lost their life savings and everybody is going to lose their job," said one employee

Not to worry. The Anointed One will put gas in your car and pay your mortgage. On top of that, he's going to create 2 million construction jobs to rebuild our infrastructure, so all you need is a hard hat and steel toed boots and you've got a job.

[Jacquerie]

The scope of this scam is incredible. Investors were not limited to country club friends, but CEOs of well large companies, hedge fund managers as well as domestic and foreign banks.

Successful people, people who knew how to read financial statements, people who knew better were taken in by the hundreds. Madoff is one helluva salesman.

[Cowboy Bob]

Madoff’s firm had traders. If this was a Ponzi scheme (a Madoff admits), what were these guys doing every day? You can't convince me that nobody else knew.

[CutePuppy]

Thanks. Can capture even more with searching by keywords, because some articles don’t include Madoff in the title:
http://www.freerepublic.com/tag/madoff/index?tab=articles
http://www.freerepublic.com/tag/bernardmadoff/index?tab=articles

[CutePuppy]

in what is emerging as the largest Ponzi scheme in history.
- What? Someone is finally unraveling Social Security?

No. Social Security is not a Ponzi scheme or pyramid scheme... it's a Pay-as-you-go scheme, and it's legal because it's run by government.

[mortal19440]

You are kidding aren’t you?

[GOPJ]

Leavitt said many were drawn to Madoff because of his reputation for exclusivity. "He had a closed fund, which is why people put more money into it, instead of diversifying," she said. "You couldn't just come in off the street and plunk down $100,000."

Ahhh yes, gotta keep the street riff raff with only $100,000 to invest out of there... Speaking for stree riff-raff everywhere - thank you, thank you.

[tips up]

If so, that’s good.

That being said, I feel sorry for anyone investing in good faith then getting screwed.

But in the case of the Dems who are all about “tax the rich” and “pay your fair share”, in this case they are unintentionally getting their wish.

[MrEdd]

MSM continues not to be able to get very simple facts strait.

This is nowhere near as big a Ponzi scheme as social security.

[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.”

---

It’s more relevant than you might suspect. Freeper Liz has good ideas on this thread - “$50 billion at stake after Wall St broker Bernard Madoff is arrested over ‘world’s biggest swindle’” - http://www.freerepublic.com/focus/news/2148101/posts , including potential for tax evasion and the potential campaign finance fraud.

http://www.freerepublic.com/focus/news/2148101/posts?page=122#122

http://www.freerepublic.com/focus/news/2148101/posts?page=126#126

http://www.freerepublic.com/focus/news/2148101/posts?page=130#130

[chiefqc]

My thought also, they can mimic the auto CEO’S, fly to Washington in their private jets, remind the elected thieves now mich money they gave to them, and put their hands out for tax payer money so that they can continue to live the excessive life style that are used to living.

[CutePuppy]

I usually omit /s or /sarc when in fear of overstating the obvious.

[BlazingArizona]

This guy stole $50 billion and Fox News - the putatively Republican network - spent all night drilling down in the story of that missing girl in Florida. People, if we’re ever going to have an economy again, we need some perspective.

[FFranco]

Defrauded investors shouldn’t be worried. I am sure the federal government will bail out their losses.

[DB]

It is my understanding that there are two different businesses involved. The primary business which the sons run didn’t have anything to do with the “investment” business dad ran. Or so the reports said...

[driftdiver]

“He was a big liberal Democrat donor and so were many of individuals who invested money in his fund for management. “

Gee thats too bad. Still it was a better investment than their donations to BO.

[CutePuppy]

See comments and links to other NYP articles that explain what exactly was done:

http://www.freerepublic.com/focus/f-bloggers/2147748/posts - I Knew Bernie Madoff Was Cheating—That’s Why I Invested with Him

[CutePuppy]

Gee thats too bad. Still it was a better investment than their donations to BO.

Some of their investments may have been donations to BO.