Madoff causes losses of US$ 50 billion with pyramid scheme!
Nasdaq Former President Bernard Madoff Arrested for Multi Billion Dollar Fraud for Ponzi Scheme
Financial pyramid scheme would have caused losses of US$ 50 billion.
Bernard Madoff can get a penalty of up to 5 years in prison.
Bernard Madoff, trader on Wall Street and founder of Bernard L. Madoff Investment Securities LLC, was arrested and charged this Thursday (11) of being behind a scheme of fraudulent multibillionaire and financial pyramid known as Ponzi, U.S. authorities informed.
Bernard Madoff Arrested – Ponzi Scheme Fraud
Federal prosecutors accuse Madoff, former president of the exchange of high-tech Nasdaq, to command a pyramid, which promised high returns to early investors, who are yhen paid with money from those who join the scheme later.
Bernard Madoff, also known as Bernie Madoff, who estimated losses of about $ 50 billion for his investors, informed staff of his consultancy firm on Wednesday that “this is a big lie” and that “it is basically a gigantic Ponzi scheme” according to a criminal complaint against him.
Bernard Madoff Hedge Fund Collapsed
Madoff, 70 years old, allegedly commanded the pyramid from the company which takes his name. He is accused of fraud and could get a sentence of up to 5 years in prison and a fine of up to US$ 5 million, prosecutors said.
“Madoff said the business was insolvent and that had been so for years. Madoff also stated he estimates that the losses with that fraud would be at least approximately US$ 50 billion,” said Lev Dassin, the U.S. Attorney for the Southern District of New York, in a statement.
Billionaire Ponzi Scheme Fraud
Authorities said that according to a document delivered by Madoff to the Securities and Exchange Commission (SEC, the main capital market regulatory agency of the U.S.) on January 7, 2008, he says he serves between 11 and 25 customers and manages a total of 17.1 billion dollars in assets.
“Bernard Madoff is for long a leader in the financial services industry. We will fight to overcome this unfortunate sequence of events,” said Madoff’s lawyer, Dan Horwitz, to journalists outside a court where he was indicted.
Billionaire acknowledged fraud
Madoff himself appeared shaken when bombarded with questions by journalists on leaving court. He was released after he recognized the fraud and presented a policy for $ 10 million dollars, giving his apartment in Manhattan as collateral.
SEC also provided civilian complaints against Madoff.
“Our complaint alleges an impressive fraud. Both related to the scope as the duration. We are moving in quickly and decisively to halt the plan and protect the remaining assets of investors,” said Scott Friestad, assistant director for SEC’s Division of Investigations.
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Posted on December 12, 2008
at 11:53 pm
Written / posted by: Simon
Filed under: News