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Wall Street Legend Arrested on Fraud Charges
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by Maireid Sullivan | December 17, 2008 at 12:27 am
115 views | 15 Recommendations | 2 comments
Yes that's $50,000,000,000 ( And we think humans are an advanced species.)
In Phil Anderson's recent highly acclaimed book "The Secret Life of Real Estate", you might like to refer to pp's 286, 265, 234, 164, 125, plus the appendices, to see how this type of scam came to light at the end of each real estate boom-bust cycle in prior years.
Phil thinks it is vitally important that investors take the time to study such frauds. He believes it helps to understand and learn from such things. More reading here: Extract: AUSTRALIAN banks and investment funds have distanced themselves from any involvement in a $US50 billion ($A75 billion) Wall Street scandal that has sent shockwaves around the world and counts wealthy investors, superannuation funds and charities among its victims. ... Australian-based fund managers yesterday said there was very little local involvement with Madoff. "We did due diligence on them about five years ago and there were red flags everywhere," one fund manager said.
A key concern among investors was the close-knit nature of the fund, where Mr Madoff's family members, including his two sons, held top management roles.
"What you'll find is that any professional investor that did their work did not put their money there," a second hedge fund manager said.
None of Mr Madoff's globally recognised funds were registered with the Australian Securities and Investments Commission.
http://business.theage.com.au/business/billions-lost-in-wall-street-fraud-20081215-6z0v.html
The following report was published in the International Herald Tribune, the global edition of the New York Times–
NEW YORK: On Wall Street, his name is legendary. With money he had made as a lifeguard on the urban beaches of Long Island, he built a trading powerhouse that had prospered for more than four decades. At the age of 70, he had become an influential spokesman for the traders who are the hidden gears of the marketplace.
But on Thursday morning, this consummate trader, Bernard Madoff, was arrested at his New York home by U.S. government agents who accused him of running a multibillion-dollar fraud scheme, perhaps the largest in Wall Street's history. Regulators have not yet been able to verify the scale of the fraud. But the criminal complaint filed against him Thursday in U.S. District Court reports that Madoff himself estimated the losses at $50 billion.
"We are alleging a massive fraud, both in terms of scope and duration," said Linda Chatman Thomsen, director of the enforcement division at the U.S. Securities and Exchange Commission. "We are moving quickly and decisively to stop the fraud and protect remaining assets for investors."
Andrew Calamari, an associate director for enforcement in the SEC's regional office in New York, said the case involved "a stunning fraud that appears to be of epic proportions."
According to his lawyers, Madoff was released on a $10 million bond. "Bernie Madoff is a longstanding leader in the financial services industry," said Daniel Horwitz, one of his lawyers. "He will fight to get through this unfortunate set of events."
The report continues on iht.com...
See another story on this here on NowPublic
Most RecentMost Recommended Comments (2)
at 04:46 on December 17th, 2008
It is absolutely incredible that this happen and went on for so long. We are fools in way as a society to still support this system and not just throw this out the door and learn for our mistakes for once an build some thing good this time.
at 13:32 on December 17th, 2008
Excellent piece