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Former Nasdaq Chairman Arrested on Fraud Charge

by Sanjay Jha | December 11, 2008 at 11:01 pm

198 views | 14 Recommendations | 3 comments

The founder of Bernard L Madoff Investment Securities and former former chairman of the Nasdaq stock market Bernard Madoff has been arrested for fraud after allegedly admitting to running a $US50 billion pyramid scheme.

Bernard Madoff, 70, faces a maximum 20 years prison and a fine of up to five million dollars if convicted on the securities fraud charge, prosecutor Lev Dassin and the FBI said in a statement.

According to the statement, Madoff on Wednesday told his employees at Bernard L. Madoff Investment Securities LLC, a securities broker, that an investor advisory business he had been running in parallel was fraudulent.

Madoff filed with the Securities and Exchange Commission on January 7 that his investor advisory business served 11 to 25 clients with about $17bn dollars in assets under management.

But Madoff allegedly told his employees that he was "finished," that he had "absolutely nothing" after losing approximately $50bn.

According to the prosecutor's statement, he said he had run "a giant Ponzi scheme" -- essentially a pyramid scam.

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Paschen

at 23:38 on December 11th, 2008

That is a lot of money.

Mikasi

at 07:52 on December 12th, 2008

Paschen, I went to the story and read it through. It did not have as much detail as I had hoped, however, there was one comment in it that I found interesting -

He told the employees he would surrender himself to the authorities after using his remaining 200-300 million dollars to pay selected employees and family and friends, the statement said.

While I am glad he would choose to pay those close to him the phrase remaining 200-300 million dollars amuses me in a sort of Zen/Taoist way.

Security (not verified)

at 10:43 on December 13th, 2008

Is Wall St. Just One Big Ponzi Scheme ?

With a $50 Billion Fraud,
it could be one of the largest fraud schemes in Wall Street history.

So Where is the Money?

Madoff told his employees. “It’s all just one big lie”

But didn't anyone, including the SEC,
wonder why this fund wasn't audited by a known firm?

That's why I recommend to verify the people before doing any business.
You can use any free services to prevent scams
just looking in his public records.

You can prevent some frauds just using:

<a href=http://ArchiveNational.Com> ArchiveNational.Com </a>
to make some background check to anybody before any serious deal.
Get free information and don't lose your money without research first.

Hope that this helps someone!

<a href=http://ArchiveNational.Com> ArchiveNational.Com </a>