Bankrupt Banker: Bernard Madoff

Bernard Madoff

Bernard Madoff On December 11, 2008, at 8.30 a.m. Federal Bureau of Investigation agents arrested Madoff on a tip-off from his sons, Andrew and Mark, and charged him with one count of securities fraud. On the day prior to his arrest, Madoff told his senior executives at the firm that the management and advisory segment of the business was "basically, a giant Ponzi scheme." Five days after his arrest, Madoff's assets and those of the firm were frozen and a receiver was appointed to handle the case. Madoff's alleged fraud may be valued at a loss of up to a US$50 billion in cash and securities. Banks from outside the U.S. have announced that they have potentially lost billions in U.S. dollars as a result. The FBI complaint states that Madoff told his sons he believed the losses from his scheme could exceed that $50 billion sum. To date, it is the largest investor fraud ever attributed to a single individual. Bernard L. Madoff Investment Securities LLC has acted on the Wall Street stage as a top market maker since 1960! It is a history of 48 years. Often we feel more respect and confidence towards the institutions with a considerable time background which is natural inasmuch as long terms of existence are usually a sign of viability and good strategy. Well, ordinary mortals that believed in reliability of Madoff’s company are not to be counted because huge corporations and reputed foundations along with prominent film directors like Steven Spielberg invested their hard-earned money into the financial structure that in fact has nothing to pay to its investors. One year brought the whole construction to an end! One year resulted in an immense loss. One year unveiled the ‘largest investor fraud ever attributed to a single individual’. Now it is hard to imagine what is there left in the world we can trust except ourselves.

Bernard Madoff

Bernard Madoff On December 11, 2008, at 8.30 a.m. Federal Bureau of Investigation agents arrested Madoff on a tip-off from his sons, Andrew ...