Former Nasdaq chairman arrested over alleged $50 billion fraud. supposedly every major hedge fund out there had money with this guy. the futures are rolling because of this news.
NEW YORK (Reuters) â Bernard Madoff, a long-time fixture and powerful adviser on Wall Street, was arrested and charged on Thursday with allegedly running a $50 billion Ponzi scheme, U.S. authorities said. The former chairman of the Nasdaq Stock Market who remains a member of Nasdaq OMX Group Inc's nominating committee, is best known as the founder of Bernard L. Madoff Investment Securities LLC, the closely-held market-making firm he founded in 1960. But the alleged fraud involved a hedge fund he ran from a separate floor of the building where his brokerage is based. Madoff told senior employees of his firm on Wednesday that "it's all just one big lie" and that it was "basically, a giant Ponzi scheme," with estimated investor losses of about $50 billion, according to a criminal complaint against him. A Ponzi scheme is a pyramid-type swindle in which very high returns are promised to early investors, who are paid off with money put up by later ones. The $50 billion allegedly lost to investors would make Madoff's fund one of the biggest frauds in history
So much for picking a few small scapegoats to restore confidence, because it's only having the opposite effect. What the hell is wrong with these people? $50 billion ponzi scheme? How many corner store robbers even dream of something like that? Such a twisted individual, is it a requirement or something to be a leader these days?
SEC and FBI has been investigating his operation for 3 years. http://news.yahoo.com/s/nm/20081212/bs_nm/us_madoff_arrest
the money investors gave him was never used to buy anything. he kept the money for himself or firm and now the money is MISSING! it's a ponzi scheme if the hedge fund just used the cash for his own activities and never purchased anything for clients. a bucket shop or ponzi scheme is same thing
When putting together a $50 billion fraud you'd hope they could catch it year 1. Our tax dollars at work...accomplishing nothing.