SlideShare a Scribd company logo
1 of 3
Download to read offline
http://en.wikipedia.org/wiki/Bernard_Madoff#cite_note-33


Yes, Bernie “MADE” Off with your Monies  while the United States allowed him to do it:


Bernard Lawrence "Bernie" Madoff - is an American former stock
broker, investment advisor, non-executive chairman of the NASDAQ stock market, and the admitted operator of
what has been described as the largest Ponzi scheme in history.
         In March 2009, Madoff pleaded guilty to 11 federal felonies and admitted to turning his wealth
management business into a massive Ponzi scheme that defrauded thousands of investors of billions of dollars.
Madoff said he began the Ponzi scheme in the early 1990s. However, federal investigators believe the fraud began
as early as the 1970s,         and those charged with recovering the missing money believe the investment
operation may never have been legitimate. The amount missing from client accounts, including fabricated gains,
was almost $65 billion. . .
      Jeffry Picower, rather than Madoff, appears to have been the largest
beneficiary of Madoff's Ponzi scheme, and his estate settled the claims against it
for $7.2 billion. J.P. Morgan Chase & Co. may have also benefitted from the
scheme – through interest and fees charged – to the tune of a billion dollars. . .
         Madoff founded the Wall Street firm Bernard L. Madoff Investment Securities LLC in 1960, and was its
chairman until his arrest on December 11, 2008. The firm was one of the top market maker businesses on Wall
Street, which bypassed "specialist" firms by directly executing orders over the counter from retail brokers. . .
         On December 10, 2008, Madoff's sons told authorities that their father had confessed to them that the asset
management unit of his firm was a massive Ponzi scheme, and quoted him as describing it as "one big lie." The
following day, FBI agents arrested Madoff and charged him with one count of securities fraud. The U.S. Securities
and Exchange Commission (SEC) had previously conducted investigations into Madoff's business practices, but
did not uncover the massive fraud. . .
        CAREER - -                Madoff was chairman of Bernard L. Madoff Investment Securities LLC from its
startup in 1960 until his arrest on December 11, 2008.
          The firm started as a penny stock trader with $5,000 ($37,000 today) that Madoff earned from working as a
lifeguard and sprinkler installer. He further secured a loan of $50,000 from his father-in-law which he also used to
set up Bernard L. Madoff Investment Securities LLC. His business grew with the assistance of his father-in-law,
accountant Saul Alpern, who referred a circle of friends and their families. Initially, the firm made markets (quoted
bid and ask prices) via the National Quotation Bureau's Pink Sheets. In order to compete with firms that were
members of the New York Stock Exchange trading on the stock exchange's floor, his firm began using
                                                      After a trial run, the
innovative computer information technology to disseminate its quotes.
technology that the firm helped develop became the NASDAQ.
         The firm functioned as a third-market provider, which bypassed exchange specialist firms, by directly
executing orders over the counter from retail brokers. At one point, Madoff Securities was the largest market
maker at the NASDAQ and in 2008 was the sixth largest market maker on Wall Street. The firm also had an
investment management and advisory division, which it did not publicize, that was the focus of the fraud
investigation. . .
         Madoff was active in the National Association of Securities Dealers (NASD), a self-regulatory securities
industry organization and has served as the Chairman of the Board of Directors and on the Board of Governors of
the NASD. . .
        GOVERNMENT ACCESS - - Since 1991, Madoff and his wife have
contributed about $240,000 to federal candidates, parties and committees, including
$25,000 a year from 2005 through 2008 to the Democratic Senatorial Campaign
Committee. . . . Senator Charles E. Schumer . . . received from Madoff and his relatives
to the trustee, and Senator Christopher J. Dodd . . .
The Madoff family gained access to Washington's lawmakers and regulators
through the industry's top trade group. The Madoff family has long-standing, high-
level ties to the Securities Industry and Financial Markets Association (SIFMA), the
primary securities industry organization. Bernard Madoff sat on the Board of
Directors of the Securities Industry Association, which merged with the Bond Market
Association in 2006 to form SIFMA.
         Madoff's brother Peter then served two terms as a member of SIFMA's Board of Directors. He stepped
down from the Board of Directors of SIFMA in December 2008, as news of the Ponzi scheme broke. From 2000 to
2008 the two Madoff brothers gave $56,000 to SIFMA, and tens of thousands of dollars more to sponsor SIFMA
industry meetings. Bernard Madoff's niece Shana Madoff was active on the Executive Committee of SIFMA's
Compliance & Legal Division, . . .
         In 2004 Genevievette Walker-Lightfoot, a lawyer in the SEC's Office of Compliance Inspections and
Examinations, informed her supervisor branch chief Mark Donohue that her review of Madoff found numerous
inconsistencies and recommended further questioning. However, because of agency pressure to investigate the
mutual fund industry, she had to conclude work on the probe. Donohue's boss, Eric Swanson, an assistant director of
the department, married Shana Madoff, after the investigation concluded in 2005. . . .
         While awaiting sentencing, Madoff met with the SEC's Inspector General, H. David Kotz, who is
conducting an investigation into how regulators failed to detect the fraud despite numerous
red flags. Madoff said he could have been caught in 2003, but bumbling investigators
acted like "Lt. Colombo" and never asked the right questions.
       "I was astonished. They never even looked at my stock records. If
investigators had checked with the Depository Trust Company, a central securities
depository, it would've been easy for them to see. If you're looking at a Ponzi scheme,
it's the first thing you do." Madoff said in the June 17, 2009, interview that SEC
Chairman Mary Schapiro was a "dear friend," and SEC Commissioner Elisse Walter
was a "terrific lady" whom he knew "pretty well."
          Since Madoff's arrest, the SEC has been criticized for its lack of financial expertise and lack of due
diligence, despite having received complaints from Harry Markopolos and others for almost a decade. The SEC's
Inspector General, H. David Kotz, found that since 1992, there were six botched investigations of Madoff by the
SEC, either through incompetent staff work or neglecting allegations of financial experts and whistle-blowers.
At least some of the SEC investigators doubted whether Madoff was even trading. . .
        INVESTMENT SCANDAL - - Concerns about Madoff's business
surfaced as early as 1999, when financial analyst Harry Markopolos informed
the U.S. Securities and Exchange Commission (SEC) that he believed it was
legally and mathematically impossible to achieve the gains Madoff claimed to
deliver. According to Markopolos, he knew within five minutes that Madoff's
numbers didn't add up, and it took four hours of failed attempts to replicate them to
conclude Madoff was a fraud. He was ignored by the Boston SEC in 2000 and
2001, as well as by Meaghan Cheung at the New York SEC in 2005 and 2007
when he presented further evidence. He has since published a book, No One
Would Listen, about the frustrating efforts he and his team made over a ten-year
period to alert the government, the industry, and the press about the Madoff
fraud.
       Although Madoff's wealth management business ultimately grew into a
multi-billion-dollar operation, none of the major derivatives firms traded with him
because they didn't think his numbers were real. None of the major Wall Street
firms invested with him either, and several high-ranking executives at those
firms suspected he wasn't legitimate.

More Related Content

Viewers also liked

GARRETSON RESOLUTION GROUP - Bernie Madoff Settlement Payouts
GARRETSON RESOLUTION GROUP - Bernie Madoff Settlement PayoutsGARRETSON RESOLUTION GROUP - Bernie Madoff Settlement Payouts
GARRETSON RESOLUTION GROUP - Bernie Madoff Settlement PayoutsVogelDenise
 
JAMIE DIMON - JP MORGAN CHASE (New York Times Article)
JAMIE DIMON - JP MORGAN CHASE (New York Times Article)JAMIE DIMON - JP MORGAN CHASE (New York Times Article)
JAMIE DIMON - JP MORGAN CHASE (New York Times Article)VogelDenise
 
BARACK OBAMA'S RELATIONSHIP With JP MORGAN CHASE BANK
BARACK OBAMA'S RELATIONSHIP With JP MORGAN CHASE BANKBARACK OBAMA'S RELATIONSHIP With JP MORGAN CHASE BANK
BARACK OBAMA'S RELATIONSHIP With JP MORGAN CHASE BANKVogelDenise
 
Nuremberg crimes against humanity-peace (malay)
Nuremberg   crimes against humanity-peace (malay)Nuremberg   crimes against humanity-peace (malay)
Nuremberg crimes against humanity-peace (malay)VogelDenise
 
UKRAINIAN hillary clinton stingers
UKRAINIAN   hillary clinton stingersUKRAINIAN   hillary clinton stingers
UKRAINIAN hillary clinton stingersVogelDenise
 
United States of America – IMMIGRATION REFORM - SWAHILI
United States of America – IMMIGRATION REFORM - SWAHILIUnited States of America – IMMIGRATION REFORM - SWAHILI
United States of America – IMMIGRATION REFORM - SWAHILIVogelDenise
 
United States of America – IMMIGRATION REFORM - BENGALI
United States of America – IMMIGRATION REFORM - BENGALIUnited States of America – IMMIGRATION REFORM - BENGALI
United States of America – IMMIGRATION REFORM - BENGALIVogelDenise
 
070512 public rebuke (filipino)
070512   public rebuke (filipino)070512   public rebuke (filipino)
070512 public rebuke (filipino)VogelDenise
 
062112 bengali (supreme court)
062112   bengali (supreme court)062112   bengali (supreme court)
062112 bengali (supreme court)VogelDenise
 
070512 public rebuke (georgian)
070512   public rebuke (georgian)070512   public rebuke (georgian)
070512 public rebuke (georgian)VogelDenise
 
092812 david addington article (bengali)
092812   david addington article (bengali)092812   david addington article (bengali)
092812 david addington article (bengali)VogelDenise
 
072712 usa ku klux klan runned government - korean
072712 usa ku klux klan runned government - korean072712 usa ku klux klan runned government - korean
072712 usa ku klux klan runned government - koreanVogelDenise
 
United States of America – IMMIGRATION REFORM - SERBIAN
United States of America – IMMIGRATION REFORM - SERBIANUnited States of America – IMMIGRATION REFORM - SERBIAN
United States of America – IMMIGRATION REFORM - SERBIANVogelDenise
 
1.บทวิเคราะห์ประเทศเพื่อนบ้าน
1.บทวิเคราะห์ประเทศเพื่อนบ้าน1.บทวิเคราะห์ประเทศเพื่อนบ้าน
1.บทวิเคราะห์ประเทศเพื่อนบ้านNexus Art'Hit
 
020915 PUBLIC RELEASE EEOC CHARGE AGAINST 1ST HERITAGE CREDIT (Arabic)
020915 PUBLIC RELEASE EEOC CHARGE AGAINST 1ST HERITAGE CREDIT (Arabic)020915 PUBLIC RELEASE EEOC CHARGE AGAINST 1ST HERITAGE CREDIT (Arabic)
020915 PUBLIC RELEASE EEOC CHARGE AGAINST 1ST HERITAGE CREDIT (Arabic)VogelDenise
 
MALCOLM X (BUILDING BRIDGES-Getting The DEVIL OFF YOUR BACK)-arabic
MALCOLM X (BUILDING BRIDGES-Getting The DEVIL OFF YOUR BACK)-arabicMALCOLM X (BUILDING BRIDGES-Getting The DEVIL OFF YOUR BACK)-arabic
MALCOLM X (BUILDING BRIDGES-Getting The DEVIL OFF YOUR BACK)-arabicVogelDenise
 
BARACK OBAMA - READ MY LIPS - ObamaFraudGate (czech)
BARACK OBAMA - READ MY LIPS - ObamaFraudGate (czech)BARACK OBAMA - READ MY LIPS - ObamaFraudGate (czech)
BARACK OBAMA - READ MY LIPS - ObamaFraudGate (czech)VogelDenise
 
021013 adecco email (norwegian)
021013   adecco email (norwegian)021013   adecco email (norwegian)
021013 adecco email (norwegian)VogelDenise
 

Viewers also liked (20)

GARRETSON RESOLUTION GROUP - Bernie Madoff Settlement Payouts
GARRETSON RESOLUTION GROUP - Bernie Madoff Settlement PayoutsGARRETSON RESOLUTION GROUP - Bernie Madoff Settlement Payouts
GARRETSON RESOLUTION GROUP - Bernie Madoff Settlement Payouts
 
JAMIE DIMON - JP MORGAN CHASE (New York Times Article)
JAMIE DIMON - JP MORGAN CHASE (New York Times Article)JAMIE DIMON - JP MORGAN CHASE (New York Times Article)
JAMIE DIMON - JP MORGAN CHASE (New York Times Article)
 
BARACK OBAMA'S RELATIONSHIP With JP MORGAN CHASE BANK
BARACK OBAMA'S RELATIONSHIP With JP MORGAN CHASE BANKBARACK OBAMA'S RELATIONSHIP With JP MORGAN CHASE BANK
BARACK OBAMA'S RELATIONSHIP With JP MORGAN CHASE BANK
 
Nuremberg crimes against humanity-peace (malay)
Nuremberg   crimes against humanity-peace (malay)Nuremberg   crimes against humanity-peace (malay)
Nuremberg crimes against humanity-peace (malay)
 
UKRAINIAN hillary clinton stingers
UKRAINIAN   hillary clinton stingersUKRAINIAN   hillary clinton stingers
UKRAINIAN hillary clinton stingers
 
United States of America – IMMIGRATION REFORM - SWAHILI
United States of America – IMMIGRATION REFORM - SWAHILIUnited States of America – IMMIGRATION REFORM - SWAHILI
United States of America – IMMIGRATION REFORM - SWAHILI
 
Welcome
WelcomeWelcome
Welcome
 
Madd 2007
Madd 2007Madd 2007
Madd 2007
 
United States of America – IMMIGRATION REFORM - BENGALI
United States of America – IMMIGRATION REFORM - BENGALIUnited States of America – IMMIGRATION REFORM - BENGALI
United States of America – IMMIGRATION REFORM - BENGALI
 
070512 public rebuke (filipino)
070512   public rebuke (filipino)070512   public rebuke (filipino)
070512 public rebuke (filipino)
 
062112 bengali (supreme court)
062112   bengali (supreme court)062112   bengali (supreme court)
062112 bengali (supreme court)
 
070512 public rebuke (georgian)
070512   public rebuke (georgian)070512   public rebuke (georgian)
070512 public rebuke (georgian)
 
092812 david addington article (bengali)
092812   david addington article (bengali)092812   david addington article (bengali)
092812 david addington article (bengali)
 
072712 usa ku klux klan runned government - korean
072712 usa ku klux klan runned government - korean072712 usa ku klux klan runned government - korean
072712 usa ku klux klan runned government - korean
 
United States of America – IMMIGRATION REFORM - SERBIAN
United States of America – IMMIGRATION REFORM - SERBIANUnited States of America – IMMIGRATION REFORM - SERBIAN
United States of America – IMMIGRATION REFORM - SERBIAN
 
1.บทวิเคราะห์ประเทศเพื่อนบ้าน
1.บทวิเคราะห์ประเทศเพื่อนบ้าน1.บทวิเคราะห์ประเทศเพื่อนบ้าน
1.บทวิเคราะห์ประเทศเพื่อนบ้าน
 
020915 PUBLIC RELEASE EEOC CHARGE AGAINST 1ST HERITAGE CREDIT (Arabic)
020915 PUBLIC RELEASE EEOC CHARGE AGAINST 1ST HERITAGE CREDIT (Arabic)020915 PUBLIC RELEASE EEOC CHARGE AGAINST 1ST HERITAGE CREDIT (Arabic)
020915 PUBLIC RELEASE EEOC CHARGE AGAINST 1ST HERITAGE CREDIT (Arabic)
 
MALCOLM X (BUILDING BRIDGES-Getting The DEVIL OFF YOUR BACK)-arabic
MALCOLM X (BUILDING BRIDGES-Getting The DEVIL OFF YOUR BACK)-arabicMALCOLM X (BUILDING BRIDGES-Getting The DEVIL OFF YOUR BACK)-arabic
MALCOLM X (BUILDING BRIDGES-Getting The DEVIL OFF YOUR BACK)-arabic
 
BARACK OBAMA - READ MY LIPS - ObamaFraudGate (czech)
BARACK OBAMA - READ MY LIPS - ObamaFraudGate (czech)BARACK OBAMA - READ MY LIPS - ObamaFraudGate (czech)
BARACK OBAMA - READ MY LIPS - ObamaFraudGate (czech)
 
021013 adecco email (norwegian)
021013   adecco email (norwegian)021013   adecco email (norwegian)
021013 adecco email (norwegian)
 

Similar to BERNARD "BERNIE" MADOFF - Synopsis

1 The Changing Environment and Stakeholder Management
 1      The Changing Environment and Stakeholder Management    1      The Changing Environment and Stakeholder Management
1 The Changing Environment and Stakeholder Management VannaJoy20
 
Case 1Bernard L. Madoff Investment Securities LLCWall Stree.docx
Case 1Bernard L. Madoff Investment Securities LLCWall Stree.docxCase 1Bernard L. Madoff Investment Securities LLCWall Stree.docx
Case 1Bernard L. Madoff Investment Securities LLCWall Stree.docxannandleola
 
Madoff presention to community group
Madoff presention to community groupMadoff presention to community group
Madoff presention to community groupPersonal
 
Bernard Madoff Scandal
Bernard Madoff ScandalBernard Madoff Scandal
Bernard Madoff ScandalJessica Myers
 
BERNIE MADOFF SCANDAL.pptx
BERNIE MADOFF SCANDAL.pptxBERNIE MADOFF SCANDAL.pptx
BERNIE MADOFF SCANDAL.pptxReymerSernero
 
Review the Madoff Securities case below.Write a four to five (4-5).docx
Review the Madoff Securities case below.Write a four to five (4-5).docxReview the Madoff Securities case below.Write a four to five (4-5).docx
Review the Madoff Securities case below.Write a four to five (4-5).docxinfantkimber
 
The Fraud of the Century The Case of Bernard Madoff update facts in.pdf
The Fraud of the Century The Case of Bernard Madoff update facts in.pdfThe Fraud of the Century The Case of Bernard Madoff update facts in.pdf
The Fraud of the Century The Case of Bernard Madoff update facts in.pdfamolmobileshop
 
Running Head Ponzi Schemes .docx
Running Head Ponzi Schemes                                       .docxRunning Head Ponzi Schemes                                       .docx
Running Head Ponzi Schemes .docxglendar3
 
Running Head Ponzi Schemes .docx
Running Head Ponzi Schemes                                       .docxRunning Head Ponzi Schemes                                       .docx
Running Head Ponzi Schemes .docxtodd581
 
Madoff Investment Scandal
Madoff Investment ScandalMadoff Investment Scandal
Madoff Investment ScandalMrG
 
1-1 Discussion Ethics and the Financial ManagerIn this module, yo.pdf
1-1 Discussion Ethics and the Financial ManagerIn this module, yo.pdf1-1 Discussion Ethics and the Financial ManagerIn this module, yo.pdf
1-1 Discussion Ethics and the Financial ManagerIn this module, yo.pdfakstextilekovai
 
Bernie Madoff Org. Crime and Deviance.pptx
Bernie Madoff Org. Crime and Deviance.pptxBernie Madoff Org. Crime and Deviance.pptx
Bernie Madoff Org. Crime and Deviance.pptxadamp35
 
Fraud: Understanding Fraud and Our Responsibilities
Fraud:  Understanding Fraud and Our ResponsibilitiesFraud:  Understanding Fraud and Our Responsibilities
Fraud: Understanding Fraud and Our ResponsibilitiesJason Lundell
 
6 White-Collar Crime and the Business Community CRIME AND C.docx
6 White-Collar Crime and the Business Community    CRIME AND C.docx6 White-Collar Crime and the Business Community    CRIME AND C.docx
6 White-Collar Crime and the Business Community CRIME AND C.docxevonnehoggarth79783
 
Bernie Madoff Steals Billions of Dollars in Fraudulent Investment Sche.pdf
Bernie Madoff Steals Billions of Dollars in Fraudulent Investment Sche.pdfBernie Madoff Steals Billions of Dollars in Fraudulent Investment Sche.pdf
Bernie Madoff Steals Billions of Dollars in Fraudulent Investment Sche.pdfarmanuelraj
 

Similar to BERNARD "BERNIE" MADOFF - Synopsis (16)

1 The Changing Environment and Stakeholder Management
 1      The Changing Environment and Stakeholder Management    1      The Changing Environment and Stakeholder Management
1 The Changing Environment and Stakeholder Management
 
Case 1Bernard L. Madoff Investment Securities LLCWall Stree.docx
Case 1Bernard L. Madoff Investment Securities LLCWall Stree.docxCase 1Bernard L. Madoff Investment Securities LLCWall Stree.docx
Case 1Bernard L. Madoff Investment Securities LLCWall Stree.docx
 
Madoff presention to community group
Madoff presention to community groupMadoff presention to community group
Madoff presention to community group
 
Bernard Madoff Scandal
Bernard Madoff ScandalBernard Madoff Scandal
Bernard Madoff Scandal
 
BERNIE MADOFF SCANDAL.pptx
BERNIE MADOFF SCANDAL.pptxBERNIE MADOFF SCANDAL.pptx
BERNIE MADOFF SCANDAL.pptx
 
Review the Madoff Securities case below.Write a four to five (4-5).docx
Review the Madoff Securities case below.Write a four to five (4-5).docxReview the Madoff Securities case below.Write a four to five (4-5).docx
Review the Madoff Securities case below.Write a four to five (4-5).docx
 
The Fraud of the Century The Case of Bernard Madoff update facts in.pdf
The Fraud of the Century The Case of Bernard Madoff update facts in.pdfThe Fraud of the Century The Case of Bernard Madoff update facts in.pdf
The Fraud of the Century The Case of Bernard Madoff update facts in.pdf
 
Running Head Ponzi Schemes .docx
Running Head Ponzi Schemes                                       .docxRunning Head Ponzi Schemes                                       .docx
Running Head Ponzi Schemes .docx
 
Running Head Ponzi Schemes .docx
Running Head Ponzi Schemes                                       .docxRunning Head Ponzi Schemes                                       .docx
Running Head Ponzi Schemes .docx
 
Madoff Investment Scandal
Madoff Investment ScandalMadoff Investment Scandal
Madoff Investment Scandal
 
The Fraud of the Century
The Fraud of the CenturyThe Fraud of the Century
The Fraud of the Century
 
1-1 Discussion Ethics and the Financial ManagerIn this module, yo.pdf
1-1 Discussion Ethics and the Financial ManagerIn this module, yo.pdf1-1 Discussion Ethics and the Financial ManagerIn this module, yo.pdf
1-1 Discussion Ethics and the Financial ManagerIn this module, yo.pdf
 
Bernie Madoff Org. Crime and Deviance.pptx
Bernie Madoff Org. Crime and Deviance.pptxBernie Madoff Org. Crime and Deviance.pptx
Bernie Madoff Org. Crime and Deviance.pptx
 
Fraud: Understanding Fraud and Our Responsibilities
Fraud:  Understanding Fraud and Our ResponsibilitiesFraud:  Understanding Fraud and Our Responsibilities
Fraud: Understanding Fraud and Our Responsibilities
 
6 White-Collar Crime and the Business Community CRIME AND C.docx
6 White-Collar Crime and the Business Community    CRIME AND C.docx6 White-Collar Crime and the Business Community    CRIME AND C.docx
6 White-Collar Crime and the Business Community CRIME AND C.docx
 
Bernie Madoff Steals Billions of Dollars in Fraudulent Investment Sche.pdf
Bernie Madoff Steals Billions of Dollars in Fraudulent Investment Sche.pdfBernie Madoff Steals Billions of Dollars in Fraudulent Investment Sche.pdf
Bernie Madoff Steals Billions of Dollars in Fraudulent Investment Sche.pdf
 

Recently uploaded

Brief biography of Julius Robert Oppenheimer
Brief biography of Julius Robert OppenheimerBrief biography of Julius Robert Oppenheimer
Brief biography of Julius Robert OppenheimerOmarCabrera39
 
Vashi Escorts, {Pooja 09892124323}, Vashi Call Girls
Vashi Escorts, {Pooja 09892124323}, Vashi Call GirlsVashi Escorts, {Pooja 09892124323}, Vashi Call Girls
Vashi Escorts, {Pooja 09892124323}, Vashi Call GirlsPooja Nehwal
 
Chandrayaan 3 Successful Moon Landing Mission.pdf
Chandrayaan 3 Successful Moon Landing Mission.pdfChandrayaan 3 Successful Moon Landing Mission.pdf
Chandrayaan 3 Successful Moon Landing Mission.pdfauroraaudrey4826
 
Dynamics of Destructive Polarisation in Mainstream and Social Media: The Case...
Dynamics of Destructive Polarisation in Mainstream and Social Media: The Case...Dynamics of Destructive Polarisation in Mainstream and Social Media: The Case...
Dynamics of Destructive Polarisation in Mainstream and Social Media: The Case...Axel Bruns
 
How Europe Underdeveloped Africa_walter.pdf
How Europe Underdeveloped Africa_walter.pdfHow Europe Underdeveloped Africa_walter.pdf
How Europe Underdeveloped Africa_walter.pdfLorenzo Lemes
 
Opportunities, challenges, and power of media and information
Opportunities, challenges, and power of media and informationOpportunities, challenges, and power of media and information
Opportunities, challenges, and power of media and informationReyMonsales
 
VIP Girls Available Call or WhatsApp 9711199012
VIP Girls Available Call or WhatsApp 9711199012VIP Girls Available Call or WhatsApp 9711199012
VIP Girls Available Call or WhatsApp 9711199012ankitnayak356677
 
Top 10 Wealthiest People In The World.pdf
Top 10 Wealthiest People In The World.pdfTop 10 Wealthiest People In The World.pdf
Top 10 Wealthiest People In The World.pdfauroraaudrey4826
 
Quiz for Heritage Indian including all the rounds
Quiz for Heritage Indian including all the roundsQuiz for Heritage Indian including all the rounds
Quiz for Heritage Indian including all the roundsnaxymaxyy
 
complaint-ECI-PM-media-1-Chandru.pdfra;;prfk
complaint-ECI-PM-media-1-Chandru.pdfra;;prfkcomplaint-ECI-PM-media-1-Chandru.pdfra;;prfk
complaint-ECI-PM-media-1-Chandru.pdfra;;prfkbhavenpr
 
N Chandrababu Naidu Launches 'Praja Galam' As Part of TDP’s Election Campaign
N Chandrababu Naidu Launches 'Praja Galam' As Part of TDP’s Election CampaignN Chandrababu Naidu Launches 'Praja Galam' As Part of TDP’s Election Campaign
N Chandrababu Naidu Launches 'Praja Galam' As Part of TDP’s Election Campaignanjanibaddipudi1
 
Different Frontiers of Social Media War in Indonesia Elections 2024
Different Frontiers of Social Media War in Indonesia Elections 2024Different Frontiers of Social Media War in Indonesia Elections 2024
Different Frontiers of Social Media War in Indonesia Elections 2024Ismail Fahmi
 
Manipur-Book-Final-2-compressed.pdfsal'rpk
Manipur-Book-Final-2-compressed.pdfsal'rpkManipur-Book-Final-2-compressed.pdfsal'rpk
Manipur-Book-Final-2-compressed.pdfsal'rpkbhavenpr
 
AP Election Survey 2024: TDP-Janasena-BJP Alliance Set To Sweep Victory
AP Election Survey 2024: TDP-Janasena-BJP Alliance Set To Sweep VictoryAP Election Survey 2024: TDP-Janasena-BJP Alliance Set To Sweep Victory
AP Election Survey 2024: TDP-Janasena-BJP Alliance Set To Sweep Victoryanjanibaddipudi1
 
HARNESSING AI FOR ENHANCED MEDIA ANALYSIS A CASE STUDY ON CHATGPT AT DRONE EM...
HARNESSING AI FOR ENHANCED MEDIA ANALYSIS A CASE STUDY ON CHATGPT AT DRONE EM...HARNESSING AI FOR ENHANCED MEDIA ANALYSIS A CASE STUDY ON CHATGPT AT DRONE EM...
HARNESSING AI FOR ENHANCED MEDIA ANALYSIS A CASE STUDY ON CHATGPT AT DRONE EM...Ismail Fahmi
 
Referendum Party 2024 Election Manifesto
Referendum Party 2024 Election ManifestoReferendum Party 2024 Election Manifesto
Referendum Party 2024 Election ManifestoSABC News
 

Recently uploaded (16)

Brief biography of Julius Robert Oppenheimer
Brief biography of Julius Robert OppenheimerBrief biography of Julius Robert Oppenheimer
Brief biography of Julius Robert Oppenheimer
 
Vashi Escorts, {Pooja 09892124323}, Vashi Call Girls
Vashi Escorts, {Pooja 09892124323}, Vashi Call GirlsVashi Escorts, {Pooja 09892124323}, Vashi Call Girls
Vashi Escorts, {Pooja 09892124323}, Vashi Call Girls
 
Chandrayaan 3 Successful Moon Landing Mission.pdf
Chandrayaan 3 Successful Moon Landing Mission.pdfChandrayaan 3 Successful Moon Landing Mission.pdf
Chandrayaan 3 Successful Moon Landing Mission.pdf
 
Dynamics of Destructive Polarisation in Mainstream and Social Media: The Case...
Dynamics of Destructive Polarisation in Mainstream and Social Media: The Case...Dynamics of Destructive Polarisation in Mainstream and Social Media: The Case...
Dynamics of Destructive Polarisation in Mainstream and Social Media: The Case...
 
How Europe Underdeveloped Africa_walter.pdf
How Europe Underdeveloped Africa_walter.pdfHow Europe Underdeveloped Africa_walter.pdf
How Europe Underdeveloped Africa_walter.pdf
 
Opportunities, challenges, and power of media and information
Opportunities, challenges, and power of media and informationOpportunities, challenges, and power of media and information
Opportunities, challenges, and power of media and information
 
VIP Girls Available Call or WhatsApp 9711199012
VIP Girls Available Call or WhatsApp 9711199012VIP Girls Available Call or WhatsApp 9711199012
VIP Girls Available Call or WhatsApp 9711199012
 
Top 10 Wealthiest People In The World.pdf
Top 10 Wealthiest People In The World.pdfTop 10 Wealthiest People In The World.pdf
Top 10 Wealthiest People In The World.pdf
 
Quiz for Heritage Indian including all the rounds
Quiz for Heritage Indian including all the roundsQuiz for Heritage Indian including all the rounds
Quiz for Heritage Indian including all the rounds
 
complaint-ECI-PM-media-1-Chandru.pdfra;;prfk
complaint-ECI-PM-media-1-Chandru.pdfra;;prfkcomplaint-ECI-PM-media-1-Chandru.pdfra;;prfk
complaint-ECI-PM-media-1-Chandru.pdfra;;prfk
 
N Chandrababu Naidu Launches 'Praja Galam' As Part of TDP’s Election Campaign
N Chandrababu Naidu Launches 'Praja Galam' As Part of TDP’s Election CampaignN Chandrababu Naidu Launches 'Praja Galam' As Part of TDP’s Election Campaign
N Chandrababu Naidu Launches 'Praja Galam' As Part of TDP’s Election Campaign
 
Different Frontiers of Social Media War in Indonesia Elections 2024
Different Frontiers of Social Media War in Indonesia Elections 2024Different Frontiers of Social Media War in Indonesia Elections 2024
Different Frontiers of Social Media War in Indonesia Elections 2024
 
Manipur-Book-Final-2-compressed.pdfsal'rpk
Manipur-Book-Final-2-compressed.pdfsal'rpkManipur-Book-Final-2-compressed.pdfsal'rpk
Manipur-Book-Final-2-compressed.pdfsal'rpk
 
AP Election Survey 2024: TDP-Janasena-BJP Alliance Set To Sweep Victory
AP Election Survey 2024: TDP-Janasena-BJP Alliance Set To Sweep VictoryAP Election Survey 2024: TDP-Janasena-BJP Alliance Set To Sweep Victory
AP Election Survey 2024: TDP-Janasena-BJP Alliance Set To Sweep Victory
 
HARNESSING AI FOR ENHANCED MEDIA ANALYSIS A CASE STUDY ON CHATGPT AT DRONE EM...
HARNESSING AI FOR ENHANCED MEDIA ANALYSIS A CASE STUDY ON CHATGPT AT DRONE EM...HARNESSING AI FOR ENHANCED MEDIA ANALYSIS A CASE STUDY ON CHATGPT AT DRONE EM...
HARNESSING AI FOR ENHANCED MEDIA ANALYSIS A CASE STUDY ON CHATGPT AT DRONE EM...
 
Referendum Party 2024 Election Manifesto
Referendum Party 2024 Election ManifestoReferendum Party 2024 Election Manifesto
Referendum Party 2024 Election Manifesto
 

BERNARD "BERNIE" MADOFF - Synopsis

  • 1. http://en.wikipedia.org/wiki/Bernard_Madoff#cite_note-33 Yes, Bernie “MADE” Off with your Monies  while the United States allowed him to do it: Bernard Lawrence "Bernie" Madoff - is an American former stock broker, investment advisor, non-executive chairman of the NASDAQ stock market, and the admitted operator of what has been described as the largest Ponzi scheme in history. In March 2009, Madoff pleaded guilty to 11 federal felonies and admitted to turning his wealth management business into a massive Ponzi scheme that defrauded thousands of investors of billions of dollars. Madoff said he began the Ponzi scheme in the early 1990s. However, federal investigators believe the fraud began as early as the 1970s, and those charged with recovering the missing money believe the investment operation may never have been legitimate. The amount missing from client accounts, including fabricated gains, was almost $65 billion. . . Jeffry Picower, rather than Madoff, appears to have been the largest beneficiary of Madoff's Ponzi scheme, and his estate settled the claims against it for $7.2 billion. J.P. Morgan Chase & Co. may have also benefitted from the scheme – through interest and fees charged – to the tune of a billion dollars. . . Madoff founded the Wall Street firm Bernard L. Madoff Investment Securities LLC in 1960, and was its chairman until his arrest on December 11, 2008. The firm was one of the top market maker businesses on Wall Street, which bypassed "specialist" firms by directly executing orders over the counter from retail brokers. . . On December 10, 2008, Madoff's sons told authorities that their father had confessed to them that the asset management unit of his firm was a massive Ponzi scheme, and quoted him as describing it as "one big lie." The following day, FBI agents arrested Madoff and charged him with one count of securities fraud. The U.S. Securities and Exchange Commission (SEC) had previously conducted investigations into Madoff's business practices, but did not uncover the massive fraud. . . CAREER - - Madoff was chairman of Bernard L. Madoff Investment Securities LLC from its startup in 1960 until his arrest on December 11, 2008. The firm started as a penny stock trader with $5,000 ($37,000 today) that Madoff earned from working as a lifeguard and sprinkler installer. He further secured a loan of $50,000 from his father-in-law which he also used to set up Bernard L. Madoff Investment Securities LLC. His business grew with the assistance of his father-in-law, accountant Saul Alpern, who referred a circle of friends and their families. Initially, the firm made markets (quoted bid and ask prices) via the National Quotation Bureau's Pink Sheets. In order to compete with firms that were members of the New York Stock Exchange trading on the stock exchange's floor, his firm began using After a trial run, the innovative computer information technology to disseminate its quotes. technology that the firm helped develop became the NASDAQ. The firm functioned as a third-market provider, which bypassed exchange specialist firms, by directly executing orders over the counter from retail brokers. At one point, Madoff Securities was the largest market maker at the NASDAQ and in 2008 was the sixth largest market maker on Wall Street. The firm also had an investment management and advisory division, which it did not publicize, that was the focus of the fraud investigation. . . Madoff was active in the National Association of Securities Dealers (NASD), a self-regulatory securities industry organization and has served as the Chairman of the Board of Directors and on the Board of Governors of the NASD. . . GOVERNMENT ACCESS - - Since 1991, Madoff and his wife have contributed about $240,000 to federal candidates, parties and committees, including $25,000 a year from 2005 through 2008 to the Democratic Senatorial Campaign Committee. . . . Senator Charles E. Schumer . . . received from Madoff and his relatives to the trustee, and Senator Christopher J. Dodd . . .
  • 2. The Madoff family gained access to Washington's lawmakers and regulators through the industry's top trade group. The Madoff family has long-standing, high- level ties to the Securities Industry and Financial Markets Association (SIFMA), the primary securities industry organization. Bernard Madoff sat on the Board of Directors of the Securities Industry Association, which merged with the Bond Market Association in 2006 to form SIFMA. Madoff's brother Peter then served two terms as a member of SIFMA's Board of Directors. He stepped down from the Board of Directors of SIFMA in December 2008, as news of the Ponzi scheme broke. From 2000 to 2008 the two Madoff brothers gave $56,000 to SIFMA, and tens of thousands of dollars more to sponsor SIFMA industry meetings. Bernard Madoff's niece Shana Madoff was active on the Executive Committee of SIFMA's Compliance & Legal Division, . . . In 2004 Genevievette Walker-Lightfoot, a lawyer in the SEC's Office of Compliance Inspections and Examinations, informed her supervisor branch chief Mark Donohue that her review of Madoff found numerous inconsistencies and recommended further questioning. However, because of agency pressure to investigate the mutual fund industry, she had to conclude work on the probe. Donohue's boss, Eric Swanson, an assistant director of the department, married Shana Madoff, after the investigation concluded in 2005. . . . While awaiting sentencing, Madoff met with the SEC's Inspector General, H. David Kotz, who is conducting an investigation into how regulators failed to detect the fraud despite numerous red flags. Madoff said he could have been caught in 2003, but bumbling investigators acted like "Lt. Colombo" and never asked the right questions. "I was astonished. They never even looked at my stock records. If investigators had checked with the Depository Trust Company, a central securities depository, it would've been easy for them to see. If you're looking at a Ponzi scheme, it's the first thing you do." Madoff said in the June 17, 2009, interview that SEC Chairman Mary Schapiro was a "dear friend," and SEC Commissioner Elisse Walter was a "terrific lady" whom he knew "pretty well." Since Madoff's arrest, the SEC has been criticized for its lack of financial expertise and lack of due diligence, despite having received complaints from Harry Markopolos and others for almost a decade. The SEC's Inspector General, H. David Kotz, found that since 1992, there were six botched investigations of Madoff by the SEC, either through incompetent staff work or neglecting allegations of financial experts and whistle-blowers. At least some of the SEC investigators doubted whether Madoff was even trading. . . INVESTMENT SCANDAL - - Concerns about Madoff's business surfaced as early as 1999, when financial analyst Harry Markopolos informed the U.S. Securities and Exchange Commission (SEC) that he believed it was legally and mathematically impossible to achieve the gains Madoff claimed to deliver. According to Markopolos, he knew within five minutes that Madoff's numbers didn't add up, and it took four hours of failed attempts to replicate them to conclude Madoff was a fraud. He was ignored by the Boston SEC in 2000 and 2001, as well as by Meaghan Cheung at the New York SEC in 2005 and 2007 when he presented further evidence. He has since published a book, No One Would Listen, about the frustrating efforts he and his team made over a ten-year period to alert the government, the industry, and the press about the Madoff fraud. Although Madoff's wealth management business ultimately grew into a multi-billion-dollar operation, none of the major derivatives firms traded with him
  • 3. because they didn't think his numbers were real. None of the major Wall Street firms invested with him either, and several high-ranking executives at those firms suspected he wasn't legitimate.