When Bernard Madoff’s register scheme collapsed in December 2006, $ 65 billion disappeared overnight, with thousands of small investors, charities and religious groups still fighting.
The former chair of the Nasdaq stock market that his tainted investment firm was “a big lie” came to the depths of the financial crisis and attracted worldwide attention. In the soup of the alphabet of opaque financial products that wreaked havoc on the world economy, people can understand this crime.
Madoff, K. Died this week The 82-year-old, in a North Carolina jail, hated it so much that he wore a bulletproof vest in court. His story features at least five on-screen images, including Robert De Niro and Illustrated Richard Dreyfus. “There really is an animal under that front. He fed us, “said Sheryl Weinstein, one of his victims. He testified after hearing his sentence.
Although the final broker turned the Manhattan mogul into a major villain, Wall Street and Europe’s financial capitals were also tarnished. He raised the red flag year after year because of his steady, steady return, but many hedge fund, bank and asset managers protested the gains from him instead of asking questions.
Born in Queens in 1936, Madoff saw his father’s sports goods business collapse and then dropped out of law school. Using money to install lifeguards and sprinklers, he started Bernard L. Madoff Investment Securities, a small brokerage in the 1960s, and turned it into a powerhouse by the controversial strategy of sending orders to traders.
He always felt close to the “clubs” of the New York Stock Exchange and the elite “white shoes” companies on Wall Street. “They fought me every step of the way,” he said A 2011 prison interview. Yet by the 1980s, his firm had processed up to 5 percent of NYSE trading.
From the endowment of New York University to the holocaust survivor Eli Wiesel to the growing network of investors among the members of the Palm Beach Country Club, there has been a silent expansion in favor of managing public finances.
Elegant and well-groomed, Madoff cultivated an air of exclusive. His business occupied a Manhattan skyscraper, and he bought a penthouse and a 56-foot yacht called the “Bull.” He blamed his results on a mystery “Divided strike” strategy.
By setting up a special “feeder fund”, the asset managers themselves go down to send him money to the client. Both men thought the operation had been audited by some people and refused to use outside guards to secure the property.
Most investment banks were more skeptical because their traders never seemed to see Madoff’s investment force as a counter. However, Jepimorgan Chase played the role of his banker. It later returns a Record 2.6bn For failing to warn the authorities of suspicion, it withdrew 250 250 million of its own money.
The regulators did nothing better than this. Although the US Securities and Exchange Commission has received six “complaints” since 1999, its investigators have been attracted by Madoff. “Reliable”Explained, later found in the investigation.
By 2006, Madoff had sent মিথ 1 billion in false statements to investors claiming that they had hold 5 billion in hold. As a result of the financial crisis, the tower of lies collapsed when big investors were asked to withdraw their funds. Since he is using the money of new investors to pay off the old, Madoff got stuck. One December evening, he confessed to his family that the whole business was a scam. His sons turned him over to the authorities the next day.
He was convicted in 2009. “I am responsible for a lot of pain and suffering. I understand, ”he said, adding that he had been sentenced to a maximum of 150 years in prison. “I’m sorry.”
One of Madoff’s sons later committed suicide, the other died of cancer. His brother Peter He spent nine years in jail, And his wife Ruth took their fate. Last year, the chief justice rejected Madoff’s request for sympathy because he had kidney failure. “Absolutely my intention was that he would spend the rest of his life in prison,” Danny Chin wrote.
Trustees spread in the financial world with legal claims against those who benefited from their Madoff Association, accusing them of trying to recover money for trustees. Ponai has scored more than 30 targets Far 14.4bn so far.
“The pain felt by Mr. Madoff’s victims of fraud cannot be alleviated by his death or our work on behalf of his victims,” the faithful Irving Picard said this week.