Bernard Madoff operated a multi-billion dollar Ponzi scheme that was revealed in 2008. This left many elderly investors destitute who had lost their life savings. There were three financial "tsunamis" that impacted Madoff investors: 1) Losing their investments, 2) SIPC failing to honor its obligation to replace lost securities up to $500,000, and 3) investors getting sued to repay fictitious profits. The trustee handling the Madoff liquidation, Irving Picard, took unprecedented actions against investors by narrowly defining net equity contrary to past precedent and SIPA law. This excluded many investors from recovering anything and led to extensive clawback litigation. Madoff investors want SIPC to
Bernard Madoff perpetrated the largest financial crime in the history of the nation. I am one of those investors. The purpose of this three part presentation is to provide inforrmation about the role of government investigations of Madoff and to introduce a book written by 20 Madoff investors. This one-of-a-kind book tells the Madoff story from the victims. The presentation itself was prepared to give to a local community group that expressed interest in better understanding Madoff from one who has experienced it.
This is a PPT file used for auditing class presentation.
Bernie Madoff organised of the biggest financial frauds and ran 65 billion worth Ponzi Scheme. This PPT was made by utilising the data in prior presentations, and several websites.
Financial Crime In The Real Estate Sector - Countering Illicit Money Flows.Aperio Intelligence
We are a corporate intelligence and financial crime advisory firm based in the City of London. We specialise in: conducting enhanced due diligence on high risk customers and third parties; integrity due diligence on critical acquisitions and investments; market entry and political risk analysis; and investigations. We provide tailored training and advisory services relating to financial crime, in particular anti-money laundering and sanctions compliance. Our clients include some of the world’s leading regulated financial institutions and corporations. Our team has decades of collective experience in advising clients on financial crime and intelligence gathering, helping them to manage risk and maximise potential.
Contact us today for further information on how we can help you.
Bernard Madoff perpetrated the largest financial crime in the history of the nation. I am one of those investors. The purpose of this three part presentation is to provide inforrmation about the role of government investigations of Madoff and to introduce a book written by 20 Madoff investors. This one-of-a-kind book tells the Madoff story from the victims. The presentation itself was prepared to give to a local community group that expressed interest in better understanding Madoff from one who has experienced it.
This is a PPT file used for auditing class presentation.
Bernie Madoff organised of the biggest financial frauds and ran 65 billion worth Ponzi Scheme. This PPT was made by utilising the data in prior presentations, and several websites.
Financial Crime In The Real Estate Sector - Countering Illicit Money Flows.Aperio Intelligence
We are a corporate intelligence and financial crime advisory firm based in the City of London. We specialise in: conducting enhanced due diligence on high risk customers and third parties; integrity due diligence on critical acquisitions and investments; market entry and political risk analysis; and investigations. We provide tailored training and advisory services relating to financial crime, in particular anti-money laundering and sanctions compliance. Our clients include some of the world’s leading regulated financial institutions and corporations. Our team has decades of collective experience in advising clients on financial crime and intelligence gathering, helping them to manage risk and maximise potential.
Contact us today for further information on how we can help you.
Many people do not realize that all fraud victims have the right to sue those who in fact ripped them off. This right even extends to persons who were victims of scams perpetuated by criminals in foreign countries.
Governments across the globe have been taking measures to increase the scrutiny of AML/CFT processes and controls, to fight Financial crimes. Individuals and firms are required to comply with minimum standards; failure to keep up with the changing requirements can lead to penalties and legal consequences.
All product and company names mentioned herein are for identification and educational purposes only and are the property of, and may be trademarks of, their respective owners.
Anti-money Laundering:-
The process of disguising the proceeds of crime in an effort to conceal their illicit origins and legitimize their future use. Its main objective is to conceal true ownership and origin of the proceeds, a desire to maintain control, a need to change the form of the proceeds.Techniques used can be simple, diverse, complex, but secret.
money laundering and corruption
,
what is money laundering
,
suspicious transaction means such transaction:
,
what are some of the challenges
,
why and how to combat money laundering
,
money laundering
,
money laundering process
,
mlpa-2012
,
incentives to launder
Money Laundering and Terrorist Financing in a Nutshell: Chapter OneMd. Moulude Hossain
Financial Crime is an increasing concern for all financial institutions, which is developing rapidly and equally together with technology. May be not limited to money laundering and terrorist financing, these two form of financial crime deserve to be attended with utmost care.
The evolving challenges of Money Laundering (ML) and Terrorist Financing (TF) lead the evolution of anti-money laundering and counter terrorist financing convention and regulations. These conventions give birth of several international organizations to combat the impact of ML and TF.
Presentation given for Crowe Horwath Auditor's training session on 26/03/2016.
AML regulations are applicable to professional service providers also. See the presentation for more information
Many people do not realize that all fraud victims have the right to sue those who in fact ripped them off. This right even extends to persons who were victims of scams perpetuated by criminals in foreign countries.
Governments across the globe have been taking measures to increase the scrutiny of AML/CFT processes and controls, to fight Financial crimes. Individuals and firms are required to comply with minimum standards; failure to keep up with the changing requirements can lead to penalties and legal consequences.
All product and company names mentioned herein are for identification and educational purposes only and are the property of, and may be trademarks of, their respective owners.
Anti-money Laundering:-
The process of disguising the proceeds of crime in an effort to conceal their illicit origins and legitimize their future use. Its main objective is to conceal true ownership and origin of the proceeds, a desire to maintain control, a need to change the form of the proceeds.Techniques used can be simple, diverse, complex, but secret.
money laundering and corruption
,
what is money laundering
,
suspicious transaction means such transaction:
,
what are some of the challenges
,
why and how to combat money laundering
,
money laundering
,
money laundering process
,
mlpa-2012
,
incentives to launder
Money Laundering and Terrorist Financing in a Nutshell: Chapter OneMd. Moulude Hossain
Financial Crime is an increasing concern for all financial institutions, which is developing rapidly and equally together with technology. May be not limited to money laundering and terrorist financing, these two form of financial crime deserve to be attended with utmost care.
The evolving challenges of Money Laundering (ML) and Terrorist Financing (TF) lead the evolution of anti-money laundering and counter terrorist financing convention and regulations. These conventions give birth of several international organizations to combat the impact of ML and TF.
Presentation given for Crowe Horwath Auditor's training session on 26/03/2016.
AML regulations are applicable to professional service providers also. See the presentation for more information
Madoff $65 billion Trap. A study in unlikely hedge fund economic returnsGaetan Lion
This is a follow up analysis after reading "No One Would Listen" by Harry Markopolos. It reviews in detail the claims Madoff made in terms of his supposed investment strategy. And, how Markopolos debunked all that. I also gathered the data firsthand and elaborated on this type of analysis.
Don't hire the next Bernie Madoff! There are plenty of red flags to be on the alert for when meeting new investment advisors. Ask plenty of questions and make sure you feel comfortable before making a decision.
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Bankers will be going back to the Medieval Diet says the FSB. They do not have StockTakers proprietary Risk Price proven to be the metric investors need. The Modal Geometry gives new clarity navigating balance sheets for sound debt structures in any firm. From that we derive our Risk Price.
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John Darer of 4Structures in Stamford, CT is an AM Best Recommended Structured Settlement Expert, Sudden Money® Advisor, Settlement Planner, Watchdog. John Darer is a well-known highly skilled creative structured settlement expert, Certified Financial Transitionist, Registered Settlement Planner, licensed insurance agent, listener, communicator, thought leader and problem solver.
Charles Schwab versus Andrew Cuomo Charles Schwab started th.pdfstandly3
Charles Schwab versus Andrew Cuomo Charles Schwab started the company that bears his
name on an exceedingly small scale in 1963; his only product at the time was an investment
advisory newsletter that was distributed to just 3,000 subscribers. Personal brokerage services
were added in 1971, and then pushed along by a constant stream of innovations-discounted fees
in 1975, computerized trades in 1978, 24-hour operations in 1980, and impartial investment
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f long-term securities. Individuals were attracted by the interest rates that so clearly eflected actual
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early 2008 , the auction mate security market had grown to pare than $200 billion. Because of the
dual need to submit new bids each month and to proberage firms or investment houses to manage
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rate securities they held. gedy, there were no bidders at the regularly. the start of the credit crunch
crisis. Sudthe interest rates became zero, the market valucs bocamed auctions, and so essentially
peable to dispose of their auction rate securities. became zero, and the holders were cers
throughout the co.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
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Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
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To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
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This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
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Challenging what you think you know about the Madoff Fraud
1. THE MADOFF FRAUD
Challenging What you Think you Know
Texas Society of Certified Public Accountants
Financial Services Conference
Thursday, September 12, 2013
Presented by: Ilene Kent
for
1
3. Financial Tsunami x 3
Tsunami 1
Madoff investors, many in their 80s and 90s wake up on
11 December 2008 to find themselves victims of a crime
- and many are left destitute.
Tsunami 2
Madoff investors find themselves victimized by the very
laws they thought were there to protect them – the
failure of SIPC to honor its statutory obligation to
replace the securities in their accounts up to $500,000
Tsunami 3
Madoff investors are sued under “clawback” statutes
and then discover that IRS will keep taxes paid on “fake
profits.”
3
5. Initial Shock
Bernard Madoff is arrested on one count of securities
fraud for allegedly operating a multi billion dollar
Ponzi scheme on December 11, 2008, one day after he
confesses to his sons.
Investors seek answers to questions that will impact the
rest of their lives
Is there anything left in our accounts?
Will SIPC be there to provide immediate funds?
Are any assets left at Madoff’s firm, if so, how long
to accumulate assets, and who gets compensated?
What action will the government take assist investors?
5
6. Who is the Madoff Investor?
www.madoffmap.com
There is virtually not a region in America that has not been
affected by the scandal.
6
9. Where does our story begin?
Securities Investor Protection Corporation
9
10. The Issue – In a Nutshell
Created in 1934 to enforce the
Securities Act of 1933
Created in 1970 following passage of the
Securities investor Protection Act (SIPA) to
Insure small investors
Protect investors’ legitimate expectations
Bankruptcy Trustee Irving Picard ignores key
elements of the SIPA by failing to:
•Pay claims promptly
•Ignoring statutory definition of net equity
10
11. SIPA - 1970
“This legislation establishes the
Securities Investor Protection
Corporation (SIPC), a private
nonprofit corporation, which will
insure the securities and cash left with
brokerage firms by investors against
loss from financial difficulties or
failure of such firms.”
11
12. SIPC’s Mission
“In order to restore pubic
confidence in the markets,
Congress pass the Securities
Protection Corporation.”
“legislation, the most important in
years, established the Securities
Investor Protection Corporation to
provide insurance for customer
accounts.”
“Customers are now insured.”
37th SEC Annual Report : 1971
12
13. SIPA and Net Equity
§78III (11)
The term “net equity” means the dollar
amount of the account or accounts or a
customer, to be determined by –
(A) Calculating the sum which would
have been owned by the debtor to
such customer if the debtor had
liquidated, by sale or purchase on
the filing date, all securities
positions of such customer (other
than customer name securities
reclaimed by such customer); minus
(B) Any indebtedness of such customer
to the debtor on the filing date; …
SIPA mandates that a customer’s
claim in a SIPA liquidation be fixed
at the customer’s “net equity.”
SIPA defines “net equity” as the value
of the securities as of the SIPA filing
date (in this case 12.11.2008) less
any amount the customer owes the
debtor.
13
14. Intent
The SIPC was intended as an additional layer of
protection for investors, should the regulatory
organizations, i.e., SEC and FINRA, fail to detect
fraud.
14
15. What Else Does SIPA Say About Net Equity?
SIPA specifically prohibits SIPC from changing the
definition of “net equity,” and affirmed by the US
Appellate Court - Second Circuit.
15
16. Public SIPC Pronouncement
Stephen Harbeck, President
that SIPC was indeed investor protection (except for
market risk) and agreed it performed an insurance
like function.
Source: House Financial Services Committee Hearing 01/05/2009)
Josephine Wang, General Counsel
“ … if clients were presented statements and had
reason to believe that the securities were in fact
owned, the SIPC will be required to buy these
securities in the open market … to make the customer
whole up to $500K..
Source: December 16, 2008 Insiders’ Blog
www.streetinsider.com
16
17. And the fight to survival begins
SIPC, underfunded and under pressure, begins
cynical fight by changing the rules of the
game.
SIPC was woefully underfunded
Members were charged statutory minimum of $150
per year for 18 years
SIPC was repeatedly warned by Congress and the
General Accounting Office that it would be unable
to manage a “catastrophic SIPC failure.”
17
18. The Trustee
This is Irving Picard’s 7th SIPC Bankruptcy. To date,
his firm, Baker and Hostetler, has billed SIPC
nearly$700 million (while expenses go unchecked)
Ignoring 38 years of precedent, Trustee asserts he
has a right to recognize investor claims only for the
amount of the net investment.
18
19. The Trustee
In the words of one lawyer, he has “devised a
scheme to enrich SIPC and its members at the
expense of customers.”
Trustee claims statements are fake, but uses those
statements to determine ‘”SIPC Worthiness”
In 2000, Gretchen Morgenson, New York Times
financial writer reported that SIPC had spent more
money on lawyers than paying claimants. That
remains the same today.
19
20. Legal Precedent
Legal Precedent
For decades and until now in numerous Ponzi scheme cases,
including a case that went to the Second Circuit, In re New
Times Securities Services, Inc., 371 F. 3d 68, 72 (2d Cir.
2004), SIPC has recognized that customers’ “legitimate
expectations” are derived from statements and trade
confirmations received from the fraudster and has paid
based on the victims’ last statement
20
21. Effect of Changed Definition
Media campaign to demonize and create
dissension between and amongst the various
victim classes:
Net Winners v. Net Losers
Direct Investors v. Indirect Investors
Older Investors v. Newer Investors
But most importantly – Bottom Line:
FEWER CLAIMS TO BE PAID
AND SIPC SAVES WALL STREET ABOUT $1.5 BILLION IN SIPC
INSURANCE
21
23. The Clawback
First time clawbacks are invoked in a SIPC
bankruptcy.
New net equity definition leaves thousands
vulnerable
Despite protestations to the contrary, smaller
investors are included in the clawbacks
Note that many elderly were required by law to take
federally mandated withdrawals from the IRAs and
other investment vehicles!
Hardship Program
23
24. Who is a Customer?
When SIPA was written in 1970 the intent was to protect all
investors, however, less than 10% of investments at that time
were through feeder funds, funds of funds, self-directed
retirement vehicles, pension funds, etc.
While there were 5,000 “direct investors” there were an
estimated 50,000 or so who were invested indirectly, i.e.,
through feeder funds, funds of funds, self-directed retirement
vehicles, pension funds, etc.
Under current law, these investors are not considered
customers at all and are ineligible for any SIPC recovery – at
all.
24
26. IRS
Madoff investors paid an estimated $40 billion in taxes
on so-called “fake profits” at the higher short-term
capital gains rate.
On 17 March 2009, IRS Commissioner Shulman issued
20-009 that provides a five-year theft loss carryback,
yet the Trustee sued for 6 years (depending on the
State of Residence at the time of the fraud)
40 cents of every every dollar that SIPC refuses to pay
is borne by the US taxpayer since tax refunds will be
paid vs. SIPC payments.
26
27. What do Madoff Investors Want?
Madoff investors are NOT demanding to be made
whole
Madoff investors are NOT asking for a bailout.
Madoff investors are NOT asking for one tax
dollar.
Madoff investors are asking, quite simply, to require
SIPC to follow the law as it is written.
27
28. Tsunami Relief
NIAP and the Stanford Victims Group have joined
forces.
Cong. Scott Garrett will introduce legislation that
will:
Prevent clawback of innocent investors.
Mandate SIPC coverage up to $500K based on final
account statement
Insist that future Trustees not be SIPC appointed, but
rather selected from a panel of SEC approved trustees
Make SEC the plenary authority over SIPC
28
29. The Club No One Wanted to Join
29
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