Wall Street Guru Charged with Massive Securities Fraud

Dec 15th, 2008 • Posted in: News

Bernard Madoff’s clients expected and received double-digit returns; but SEC says it was all a giant Ponzi scheme

NEW YORK
A legendary New York financial adviser has been charged with running what investigators say may be one of the biggest financial scams in history.

Bernard Madoff, the founder of Bernard Madoff Investment Securities and the former chairman of the NASDAQ stock market, faces criminal charges an a case that could involve endangered assets of as much as $50 billion, according to the Financial Times.

Forbes reports that the U.S. Securities and Exchange Commission characterizes the case as a “multibillion dollar Ponzi scheme” of “epic proportions.”

A Ponzi scheme is a fraud in which funds from new investors are used to pay off existing investors, convincing existing investors that their high returns are a result of the investment, rather than a siphoning of money from new victims.

According to ABC News, Madoff routinely provided double-digit returns to investors for years. His services were in such demand that as recently as two months ago he was turning away new business, ABC reports.

Bloomberg notes that Madoff was turned in by his sons reportedly after confessing to them the nature of his scheme.

A lawyer for Madoff declined to comment specifically on the allegations, according to the Wall Street Journal, but did insist that Madoff is a “person of integrity” who intends to “fight to get through this unfortunate event.”

Sources: Wall Street Journal, Dec. 13 — Financial Times, Dec. 12 — Bloomberg, Dec. 12 — Forbes, Dec. 11 — ABC News, Dec. 11.

For more information, see: Related Newsline story, Dec. 8 — Related Newsline Commentary, Nov. 24 — Related Newsline story, Nov. 24 — Related Newsline story, Nov. 17.

 Print This Story  Email This Story

User content does not reflect the views of the Institute for Global Ethics or its affiliates. IGE neither guarantees the truthfulness, accuracy, or reliability of any user content, nor endorses any opinions expressed therein.

Support Provided By

• Support the Institute for Global Ethics

  

• Categories

  Select Category Book Review Commentary Education Activity Interview Job Posting Letters From Readers News NONE Notice Quote from the Ethics File Research Report Statline Trendlines Weekly Overview What They’re Saying Whatever Happened To

• Monthly Archives

  Select Month March 2010 February 2010 January 2010 December 2009 November 2009 October 2009 September 2009 August 2009 July 2009 June 2009 May 2009 April 2009 March 2009 February 2009 January 2009 December 2008 November 2008 October 2008 September 2008 August 2008 July 2008 June 2008 May 2008 April 2008 March 2008 February 2008 January 2008 December 2007 November 2007 October 2007 September 2007 August 2007 July 2007 June 2007 May 2007 April 2007 March 2007 February 2007 January 2007 December 2006 November 2006 October 2006 September 2006 August 2006 July 2006 June 2006 May 2006 April 2006 March 2006 February 2006 January 2006 December 2005 November 2005 October 2005 September 2005 August 2005 July 2005 June 2005 May 2005 April 2005 March 2005 February 2005 January 2005 December 2004 November 2004 October 2004 September 2004 August 2004 July 2004 June 2004 May 2004 April 2004 March 2004 February 2004 January 2004 December 2003 November 2003 October 2003 September 2003 August 2003 July 2003 June 2003 May 2003 April 2003 March 2003 February 2003 January 2003 December 2002 November 2002 October 2002 September 2002 August 2002 July 2002 June 2002 May 2002 April 2002 March 2002 February 2002 January 2002 December 2001 November 2001 October 2001 September 2001 August 2001 July 2001 June 2001 May 2001 April 2001 March 2001 February 2001 January 2001 December 2000 November 2000 October 2000 September 2000 August 2000 July 2000 June 2000 May 2000 April 2000 March 2000 February 2000 January 2000 2000 December 1999 November 1999 October 1999 September 1999 August 1999 July 1999 June 1999 May 1999 April 1999 March 1999 February 1999 January 1999 December 1998 November 1998 October 1998 September 1998 August 1998 July 1998 June 1998 May 1998 April 1998 March 1998 February 1998

• Calendar: Search archives by publication date.

  December 2008

  S	M	T	W	T	F	S
  « Nov				Jan »
  	1	2	3	4	5	6
  7	8	9	10	11	12	13
  14	15	16	17	18	19	20
  21	22	23	24	25	26	27
  28	29	30	31

• Rush Kidder’s New Book! Click book cover to order today.