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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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To: BobL
...but need to chase the BIG YIELDS...

It' called 'Keeping AHEAD of the Joneses'.

Their self esteem seems to be directly tied to the size of their bank account.

41 posted on 12/14/2008 3:31:33 PM PST by realdifferent1 (We've tried the soap box, jury box and ballot box. Only one box left.)
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To: PapaBear3625

God’s payback for abandoning their homeland by voting for the POS-elect??


42 posted on 12/14/2008 3:33:13 PM PST by realdifferent1 (We've tried the soap box, jury box and ballot box. Only one box left.)
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To: CutePuppy
Yet another honorable dimocrat donor who has run afoul of the law.
43 posted on 12/14/2008 3:33:27 PM PST by RetiredArmy (My home is protected by the 2d Amendment!! Locked and loaded.)
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To: CutePuppy
See comments and links to other NYP articles that explain what exactly was done:

Thanks for the info. It helps to confirm (at least in my mind!) that others in the firm knew what was going on.

44 posted on 12/14/2008 3:33:44 PM PST by Cowboy Bob
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To: BobL

***when I have not even one tenth of that amount and would never trust a person...no matter who with that money.***

Mt friend, my pal! I have a worm farm I would like you to invest in! ;-)


45 posted on 12/14/2008 3:40:17 PM PST by Ruy Dias de Bivar (NEVER FORGET TREASON!)
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To: muawiyah
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.

A+
46 posted on 12/14/2008 3:41:47 PM PST by gipper81 (If anyone is asking "why?" - read the Road to Serfdom, FA Hayek)
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To: Ruy Dias de Bivar

“Mt friend, my pal! I have a worm farm I would like you to invest in!”

Sounds like a sure bet. Where do I sign up? Daaaaaa


47 posted on 12/14/2008 3:44:17 PM PST by BobL
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To: realdifferent1

“It’ called ‘Keeping AHEAD of the Joneses’.

Their self esteem seems to be directly tied to the size of their bank account.”

Yep...no other way to explain. As others said, now they’ll go crying to Obama.


48 posted on 12/14/2008 3:46:05 PM PST by BobL
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To: Jacquerie

Many investors join Hedge funds because they know it operates out of the regulations. They can do what they please but many forget it cuts both ways.


49 posted on 12/14/2008 3:53:03 PM PST by Orange1998
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To: CutePuppy

Bernie is such a good Democrat. He contributed to endless Democrat candidates including Barrack Hussein Obama.

Throw the whole family in jail and put Bernie in the electric chair. Lautenberg aka “the Mummy” was a big investor.

You know what the dirty stinking secret is - Madoff first business or main business was market making in stocks. The stories are not telling you that most investors thought Bernie was essentially front running his order flow to get such good returns (i.e. cheating).

This means his traders could see big block of say IBM being bought and Bernie’s traders would trade ahead or buy before those trades were executed. This could boost returns. If you had some pretty sophisticated softwrae this is one way Bernie could have cheated to get an edge - if he had been smart enough.

In other words his investors thought Bernie was engaging in illegal actions to get an edge on the market. Well he was but they were not the illegal acts his investors expected! It was their little secret unfortunately it was not the secret they expected.


50 posted on 12/14/2008 3:54:41 PM PST by Frantzie
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To: BobL
Yep. Money management is not at all complicated. They should have just divided their money between treasuries of various maturities, AAA munis, and a stock index fund. All of that could have been done with about 4 or 5 mutual funds.

Keep it simple and cheap!

51 posted on 12/14/2008 3:54:49 PM PST by Ken H
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To: Oshkalaboomboom

The family were in on it.

Somebody help me out here. From what I heard in a ponzi scheme - the people who have been paid back recently may have to give money back or could be sued to return money they recently received.


52 posted on 12/14/2008 3:57:27 PM PST by Frantzie
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To: Ruy Dias de Bivar
I have a worm farm I would like you to invest in! ;-)

Are you sure those are legal? I thought they were part of the underground economy!

53 posted on 12/14/2008 3:58:47 PM PST by Ken H
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To: 4rcane

All of these charitable foundations and family foundations are usually a tax dodge. Lautenberg is a real piece of garbage.


54 posted on 12/14/2008 3:59:32 PM PST by Frantzie
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To: CutePuppy

From the article..

***Said one hedge-fund manager who knew many of Madoff’s investors: “There are a lot of people in New York who were rich yesterday and are insolvent today.” ****

Well, flipping burgers ain’t out of style! Get a job!


55 posted on 12/14/2008 3:59:47 PM PST by Ruy Dias de Bivar (NEVER FORGET TREASON!)
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To: Oshkalaboomboom

Sometimes a person can live a lie, but eventually the lie exposes you for what you are.


56 posted on 12/14/2008 4:02:45 PM PST by baltoga
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To: Oshkalaboomboom

total BS and the media sounds like they are buying it...the sons are in on it from the beginning or they are dumber than dirt...just an ole man taking the bullet for now...the family has pocketed hundreds of millions and billions off shore...may they rot in hell or be taken out ASAP! i probably don’t know it but the faceless SOBs who are managing my very meger...now much more meger assets probably bought this dirt bags sorry assed fund and i have loss my lifetime retirment to the greedy buns just like everyone else...i really hate all these people and someone must eventually pay for my pain...maybe not now but soon...please though don’t anyone believe this bullshit


57 posted on 12/14/2008 4:03:41 PM PST by ldish (God save the USA)
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To: PapaBear3625

exactly and his sons are in on it too and have stashed a bunch of it and a nice cover story to protect them


58 posted on 12/14/2008 4:05:08 PM PST by ldish (God save the USA)
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To: BlazingArizona
exactly and we should all be marching on Washington...but no one in the media wants to awaken or provoke the (formally) middle class American baby boomers who are funding the wealth redistribution, and CRA BS and the freddie and fannie give away and greed in wall street and greedy CEOs wanting the salaries of hollywood and professional ball playing goof offs and corporate greedy bastard lawyers who get all the class action BS suits and the empty suited liars in congress on the take, and the dumb dodds and osamas getting sweetheart loans, and pelosi idiots and barneys be in the AO with a Frank and the chuckie sumber clowns ego monsters and the rangle i am a crook...did i leave anyone one out...i am mad as hell and close to not taking this SH*T any more......................
59 posted on 12/14/2008 4:14:36 PM PST by ldish (God save the USA)
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To: CutePuppy

What a fine group of people to defraud!


60 posted on 12/14/2008 4:25:33 PM PST by ConservativeMind (What's "Price Gouging"? Should government force us to sell to the 15th highest bidder on eBay?)
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