Australian (ASX) Stock Market Forum

Bernard Madoff - $50 Billion Scam

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awg said:
One of the most intriguing aspects will be to find out how long this bad business has been going on?

Has it been a Ponzi scheme from the start?
Click to expand...

It appears so.


Madoff fund may have made no trades

http://compareshares.com.au/show_news.php?id=S-544300

"The investment fund run by disgraced money manager Bernard Madoff may not have made even a single trade"


If the son Mark Madoff knew nothing of the scheme, his salary of $770,000 back in 2000 was a bit excessive for a "lunch boy".

I suggest that Madoff who is under house arrest in his $7 million Upper East Side penthouse should be moved to house arrest in a United Nations run school in the Gaza Strip.
 
Macquack said:
It appears so.


Madoff fund may have made no trades

http://compareshares.com.au/show_news.php?id=S-544300

"The investment fund run by disgraced money manager Bernard Madoff may not have made even a single trade"


If the son Mark Madoff knew nothing of the scheme, his salary of $770,000 back in 2000 was a bit excessive for a "lunch boy".

I suggest that Madoff who is under house arrest in his $7 million Upper East Side penthouse should be moved to house arrest in a United Nations run school in the Gaza Strip.
Click to expand...


Like Mr.Buffett warned all of us that Financial WMD's dont exist right?? ;)
 
Banco Santander Painted a Rosy Madoff Picture Just Weeks Before His Arrest

http://www.newsinferno.com/archives/4610#more-4610

“The real and effectual discipline which is exercised over a workman is ... that of his customers. It is the fear of losing their employment which restrains his frauds and corrects his negligence.” - Adam Smith

Well in theory anyway------------------------------------------->:rolleyes:!!

Jan 23, 2009

Just weeks before Bernard Madoff’s alleged Ponzi scheme collapsed, managers at Banco Santander’s Optimal hedge fund investment arm were praising Madoff’s supposedly “impeccable” market timing, according to a report on FT.com. Once Madoff was arrested for securities fraud, investors in Banco Santander’s Optimal Strategic US Equity Fund lost more than $3.1 million because of investments made with the alleged swindler.

The glowing evaluation of Madoff was made in a report issued by Optimal managers to institutional investors in the fund. According to FT.com, the report said the managers were “impressed” by Madoff’s ability “to find great entry and exit points to benefit investors”.

But that rosy assessment conflicts with the actions of some other Banco Santander officials. According to FT.com, they were “sufficiently concerned about Optimal’s client exposure to Madoff” that a director of the bank was sent to meet with Madoff in New York in November.

There are conflicting reports about what happened at that meeting, FT.com said. One account has Banco Santander attempting to withdraw Optimal’s funds. It is speculated that the withdraw request may have been behind Madoff’s reported confession of the Ponzi scheme to his sons. But according to FT.com, other sources have called the November meeting “routine”.

A Spanish prosecutor is already trying to get to the bottom of the Banco Santander mess, having opened an investigation shortly after Madoff’s December arrest. In addition to trying to ascertain what happened at that November meeting, the prosecutor is investigating whether managers of the Optimal Strategic US Equity Fund knew of problems at Madoff’s operations when they marketed the vehicle to investors.

They are also looking at the timing of the resignation of Manuel Echeverría, who The Wall Street Journal said presided over the Optimal fund while it built its relationship with Madoff. He left the bank on June 30, 2008 after 19 years there. Five colleagues also quit at the same time. (ABANDON SHIP! ;))

The investigation is also looking into the methods used by Banco Santander to recruit investors for the Optimal fund. While the funds were meant for wealthy private banking clients, Santander branch managers reportedly channeled customers with money from property sales or inheritances to private banking salespeople, who convinced them to sink their money into the Optimal Strategic US Equity Fund. These investors were often of modest means. They included a former street vendor who was convinced to invest more than $400,000 in lottery winnings in the Optimal fund. That client had to return to street vending after Santander lost his winnings.
 
Two more arrested for Madoffian type schemes!
Notice the eponyms have begun with Madoff-like and Mini-Madoff.

Wow the SEC has done so well. I mean how could have they known? :cautious:

Anyone care to guess how many more will be arrested?

Long Island has its very own 'Madoff,' feds charge

http://www.nydailynews.com/money/2009/01/26/2009-01-26_li_has_its_very_own_madoff_feds_charge.html

The head of a Long Island investment firm, who the feds think is a Bernie Madoff-like swindler, surrendered last night after eluding authorities for most of the day.

Nicholas Cosmo, 37, crafted a Ponzi scheme that could cost his investors as much as $130 million, authorities said. Other estimates put the losses around $400 million.

Missing Florida 'mini Madoff' broker turns himself in: report
http://www.google.com/hostednews/afp/article/ALeqM5hQGLsZaV8zGQ5FE4njV6GCT-nTUA

MIAMI (AFP) ”” A US investor accused of scamming clients out of millions of dollars in what is being called a "mini Madoff" affair turned himself in to the FBI in Florida Tuesday after going missing for nearly two weeks, local media said citing law enforcement.

Arthur Nadel was charged with fraud by the US Securities and Exchange Commission (SEC) in mismanaging millions of dollars in investment funds from his firm in Sarasota, along Florida's Gulf Coast, according to the Sarasota Herald Tribune.

He turned himself in to the FBI early Tuesday, when agents began interrogating the 76-year-old hedge fund manager of Scoop Management, Inc who disappeared January 14, the paper cited law enforcement officials as saying.

Last week the SEC said Nadel was accused of fraudulently operating six hedge funds claiming to manage 342 million dollars, but the funds were actually worth less than one million dollars.
 

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GumbyLearner said:
Two more arrested for Madoffian type schemes!
Notice the eponyms have begun with Madoff-like and Mini-Madoff.

Wow the SEC has done so well. I mean how could have they known? :cautious:

Anyone care to guess how many more will be arrested?

Long Island has its very own 'Madoff,' feds charge

http://www.nydailynews.com/money/2009/01/26/2009-01-26_li_has_its_very_own_madoff_feds_charge.html

The head of a Long Island investment firm, who the feds think is a Bernie Madoff-like swindler, surrendered last night after eluding authorities for most of the day.

Nicholas Cosmo, 37, crafted a Ponzi scheme that could cost his investors as much as $130 million, authorities said. Other estimates put the losses around $400 million.

Missing Florida 'mini Madoff' broker turns himself in: report
http://www.google.com/hostednews/afp/article/ALeqM5hQGLsZaV8zGQ5FE4njV6GCT-nTUA

MIAMI (AFP) — A US investor accused of scamming clients out of millions of dollars in what is being called a "mini Madoff" affair turned himself in to the FBI in Florida Tuesday after going missing for nearly two weeks, local media said citing law enforcement.

Arthur Nadel was charged with fraud by the US Securities and Exchange Commission (SEC) in mismanaging millions of dollars in investment funds from his firm in Sarasota, along Florida's Gulf Coast, according to the Sarasota Herald Tribune.

He turned himself in to the FBI early Tuesday, when agents began interrogating the 76-year-old hedge fund manager of Scoop Management, Inc who disappeared January 14, the paper cited law enforcement officials as saying.

Last week the SEC said Nadel was accused of fraudulently operating six hedge funds claiming to manage 342 million dollars, but the funds were actually worth less than one million dollars.
Click to expand...

If the Authorities keep shaking the Mega Money Tree hard enough and long enough, so-o-o many PonziApes will fall out (clutching wads of cash) that the Tree will be left bare....

Mebbe it would better to leave some of 'em hidden in the upper canopy, to provide some degree of "shadiness" for the rest of us sorry scum burning up in the harsh glare of reality. :angry:
 
Private clients get a win from Madoff-related scandal

Santander Says 2008 Profit Declined on Madoff-Related Charge By Charles Penty

Jan. 28 (Bloomberg) -- Banco Santander SA, Spain’s biggest bank, said profit fell in 2008 after it took a charge of 350 million euros ($464 million) related to the alleged Madoff fraud.

Santander earned 8.88 billion euros ($11.8 billion) last year, or 2 percent less than the previous year’s profit of 9.06 billion euros, the bank said in a filing to regulators today. The bank missed an estimate given in June by Chairman Emilio Botin, who said the bank expected to earn at least 10 billion euros.

The bank said it would pay a final 2008 dividend of 25.7 euro cents per share.

Santander added 45 cents, or 7.8 percent, to 6.20 euros as of 12:34 p.m. in Madrid trading.

The bank, which yesterday said it would pay 1.38 billion euros to compensate private banking clients hit by the alleged Madoff fraud with preferred shares, will release full details of results Feb. 5.
 
Markopolous believes that there are 14 total feeder funds that he and his crew have identified. He stated today that there 12 of the 14 based in France and Switzerland are lying low at present and have not made their losses public yet. :eek:
 
1:40 p.m. | “You’ve told us nothing”: A steaming and yelling Mr. Ackerman blasts the S.E.C. “I am frustrated beyond belief. We are talking to ourselves and you are pretending to be here. You’ve told us nothing. What the heck went on? What went wrong? One guy with a few friends and helpers found this fraud over a decade. You guys couldn’t find your backside with two hands when the lights are on. You have totally failed in your mission.”
Click to expand...

Just had to post this little piece from the Madoff hearing. Rest of the story is also enlightening.

http://dealbook.blogs.nytimes.com/2009/02/04/live-blogging-the-houses-madoff-hearing/ (as posted by Gumby)
 
Huh?

Somebody madeoff with the Madoff thread?

All I get when I click on the thread link for the latest post is WayneL's ruddy atavar thumbnail... LOL

I should have known. :D
 
It would be great to hear a detailed analysis of Peter Schiff on the Made-off Ponzi Scheme.

I know in many of his interviews he states that Wall Street needs "less regulation" and Government should "get out of the way". He has also said on many occasions that Wall St and the American economy is "a giant Ponzi scheme", and "the free market is capable of regulating itself".

If this is the case, where does Schiff draw the line between obsequious butt-licking regulators who are like a bunch of timid wet shivering poodles and the honest guys out their like Mr.Markopolous who are more than willing to put their necks on the line for the benefit of investors (this guy has the biggest balls of anyone I have ever seen since I began investing in the market 10 years ago). Rather than tout books over the airwaves! Ka-ching!

I have noticed he has paid little more than lip-service or "sound-byte" snippets to these issues.

Peter Schiff predicted the crash without question but has certainly suffered great losses with regard to his emphasis on commodities (except gold ).

Does Schiff actually believe that the system can naturally govern itself?
I know he was an Economic adviser for Ron Paul's campaign for the White House. But surely he can't be serious?

I wonder how many of his own clients or IF his own portfolio is tied up in Made-off or Madoffian type schemes.

Just a recipe for anarchy by the looks of things! JMO

Markopolous starts at about the 12 minute mark (Even the pollies seem shocked by his detailed, thorough and honest analysis of the fraud) ;)

http://www.c-span.org/Watch/watch.aspx?MediaId=HP-A-15082
 
SEC says magnitude of Ponzi schemes growing

http://www.reuters.com/article/ousiv/idUSTRE5154QR20090206

WASHINGTON (Reuters) - The frequency of Ponzi schemes is not increasing but the magnitude of the frauds is, a Securities and Exchange Commission official said on Friday.

The SEC has been under intense scrutiny for not uncovering the alleged $50 billion fraud carried out by former Nasdaq Chairman Bernard Madoff, who is accused of running a massive Ponzi scheme for years.

Donald Hoerl, director of the SEC's Denver office, said the agency has filed about 70 Ponzi cases in the last two years and has filed four cases since Madoff was charged in early December.

"That's not a dramatic upswing in terms of the number of cases," said Hoerl, speaking at the Practising Law Institute's annual SEC Speaks conference. "What is different is the magnitude of the Ponzi schemes."

Ponzi schemes involve frauds in which early investors are paid with money from later investors.

Hoerl said the SEC's recent Ponzi scheme cases involve staggering amounts of money. In late January, the agency charged then-missing fund manager Arthur Nadel with defrauding investors at six Florida-based hedge funds.

The SEC said Nadel provided false information to investors about the funds' returns and overstated the value of the investments by $300 million.

"The magnitude of these schemes serves as a reminder to us we need to continue our focus in this area," Hoerl said.


What the **** would they know anyway?

They could'nt even detect this one until the scam was rampant. The SEC should setup an office in Geneva if it is really serious about the Made-off scheme. I'm sure there are many cashed up opportunities that they could DECIDE not to pursue over in Yodel-yodel-lay-e-who land ;)
 
SEC chief says agency to act like "hair is on fire"

http://www.reuters.com/article/ousiv/idUSTRE51548J20090206

WASHINGTON (Reuters) - The new head of the Securities and Exchange Commission took steps on Friday to reinvigorate the agency's policing of Wall Street, two days after a congressional hearing chastised SEC investigators for failing to uncover Bernard Madoff's alleged $50 billion fraud.

"I like to tell the staff we are going to act like our hair is on fire," SEC Chairman Mary Schapiro told reporters after an appearance at a conference.

It was interesting to hear from Mr.Markopolous mid-week.

In testimony before the Congress, Mr. Markopolos tore the SEC to pieces, effectively accusing them of being both incompetent and "bought off" at the same time. These are the people who are supposed to look out for the rules - for the investor and the common man - so that swindles and frauds don't go on without detection and punishment. One of the best quotes from that testimony was:

Asked by a committee member to compare the two agencies failings, Markopolos said, "I never thought the SEC was corrupt... FINRA is definitely in bed with the industry." Asked later by Rep. Kanjorski about those comments as well as which one Markopolos thought was better, "a corrupt regulator or an incompetent one," Markopolos answered, "I'd give the SEC an A+ for incompetence and FINRA an A+ for corruption."

That's special. Let's not forget that Ms. Shapiro, who ran FINRA, is President Obama's nominee for head of the SEC. We are thus, from Markopolos' point of view, replacing an incompetent regulatory chief with a corrupt one. That's JUST what we need.

For more than ten years, these clowns ignored a skilled professional who gave them plenty of hard evidence that was trivially-easy to verify. All they had to do is head over to the OEX options contracts and have a look - were there enough traded to make Madoff's strategy possible or not? The answer was "not" but nobody looked.

Maybe Mary Schapiro should talk someone who knows what it's really like to have had your hair on fire. :mad:

Smooth Criminal by MJ
 
Doo u fink maybee fey maid a mizsteak?

SEC 'illiteracy' to blame for Madoff failings

http://www.ft.com/cms/s/0/2af2c04c-f326-11dd-abe6-0000779fd2ac.html

The losses linked to Bernard Madoff may be closer to $15bn-$25bn rather than the $50bn the New York broker allegedly told US investigators, according to Harry Markopolos, a former money manager and long-time Madoff critic.

Mr Markopolos, who tried for nine years to expose Mr Madoff, told a congressional hearing yesterday that staff incompetence on the part of the US Securities and Exchange Commission was partly to blame for failing to bring a case against Mr Madoff earlier.

"I gift-wrapped and delivered the largest Ponzi scheme in history to them," he said. Most officials "did not understand . . . the 29 red flags that I handed them".

"The SEC securities lawyers, if only through their investigative ineptitude and financial illiteracy, colluded to maintain large frauds such as the one to which Madoff later confessed," Mr Markopolos said.
 
...and the ongoing Ponzi fallout continues unabated ....

US authorities charged Texas billionaire Allen Stanford and three of his companies with "massive ongoing fraud" on Tuesday as federal agents swooped in on Stanford's US headquarters.

In a complaint filed in federal court in Dallas, the US Securities and Exchange Commission (SEC) accused the cricket-loving Stanford and two other top executives at Stanford Financial Group of fraudulently selling $US8 billion in high-yield certificates of deposit.
Click to expand...

http://business.theage.com.au/busin...with-massive-ongoing-fraud-20090218-8ahx.html

Not to worry. The news can only get worse. :banghead:
 
Aussiejeff said:
...and the ongoing Ponzi fallout continues unabated ....



http://business.theage.com.au/busin...with-massive-ongoing-fraud-20090218-8ahx.html

Not to worry. The news can only get worse. :banghead:
Click to expand...

It looks like any involvement with cricket is no pre-requisite for financial success or sound financial investment. Just ask people who invested with Storm Financial (Andrew Symonds, John Buchanan),Maxen Developments (Craig McDermott) or now 20/20 creator Sir Allen Scamford.

Dodgy! :vomit:
 
If Stanford has been selling $8 bill of dodgy bank certificates of deposit then there will some very sick conservative institutions that are supposed to invest their funds in "cash" . That means our super funds, Councils, possibly banks and many private companies. I fear there will some dramatic follow on effects. It surprises me that we haven't yet seen the impact of the Modoff scam (or maybe no one wants to say it out loud..) on such institutions.

$8,000,000,000-not small change
 

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