Bernard Madoff arrested over alleged $50 billion fraud (Former Nasdaq chairman)

YahooNews ^ | 12/11/08

[Sammy67]

NEW YORK (Reuters) – Bernard Madoff, a long-time fixture and powerful adviser on Wall Street, was arrested and charged on Thursday with allegedly running a $50 billion Ponzi scheme, U.S. authorities said.

The former chairman of the Nasdaq Stock Market who remains a member of Nasdaq OMX Group Inc's nominating committee, is best known as the founder of Bernard L. Madoff Investment Securities LLC, the closely-held market-making firm he founded in 1960.

But the alleged fraud involved a hedge fund he ran from a separate floor of the building where his brokerage is based.

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 a criminal complaint against him.

A Ponzi scheme is a pyramid-type swindle in which very high returns are promised to early investors, who are

[bruinbirdman]

Bernard L. Madoff Investment Securities, LLC

Madoff makes markets. Founded in 1960, Bernard L. Madoff Investment Securities is a top market maker in US stocks, including all of the S&P 500 and more than 350 Nasdaq stocks, as well as bonds and other instruments. It is also a member of the London Stock Exchange. The firm moves large blocks of stock for institutional clients by splitting up orders or arranging off-exchange transactions between parties. Clients include brokerages, banks, and other financial institutions. The firm, which is controlled by founder Bernard Madoff and his family, also performs clearing and settlement services.

yitbos

[1066AD]

I read stuff like this then look at the wreckage of my IRAs and I think the Chinese deal with these types the best way... Bang !

[1066AD]

by today’s standards is: If you are going to steal, steal BIG.

A variation on the rule that if you're going to owe money, owe a large enough sum that any default becomes the bank's problem LOL

[4Liberty]

This sounds like Social Security “scheme.”

So glad Govt’s running banks & autos now.

[Rocky]

"Our complaint alleges a stunning fraud -- both in terms of scope and duration," said Scott Friestad, the SEC's deputy enforcer. "We are moving quickly and decisively to stop the scheme and protect the remaining assets for investors."

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The SEC said it appeared that virtually all of the assets of his hedge fund business were missing.

I'm so glad these people are watching out for us. How about you?