Anybody get screwed by Madoff?

What a terrible situation, I hope nobody here lost any $$ on that as*hole

Good god. I am amazed at some of the people taken by that guy, some of the wealthiest people down here got wiped out. How the hell can you have all your eggs in one basket!?

 

What really puzzles me is that they let him out on $10 million dollar bail thats secured by his OWN SIGNATURE?!

 

Also another way to look at the mess...

 

Consider also that the F.B.I. moved over 1800 agents away from investigating these sort of white collar crimes in the wake of 9/11, opening the door of our financial system even further to abuse with minimal risks to the perps...

Speaking of which, WTF?!

with that kinda money he could have bailed out the auto industry

The irony is that his name is pronounced "made off", as in he MADE OFF WITH $50 billion!

Being only a couple days since his arrest, i am sure wallstreet does not even have the furthest clue on how many people this affected. He cannot be the only one to orchestrate such a feat! His sons turned him in, but him being 70yrs old was he doing this to protect his family which of course would be in the "family business"

 

 

 

 

Speaking of which, WTF?!

 

 

Ouch. This is going to hurt. I have to say I feel bad for the other equity partners who are going to be left with cleaning up his mess.

 

For lawyers there now, the delegation of responsibility means that they are just now figuring out that Mr. Dreier had let their malpractice insurance lapse, exposing them to enormous risk if they are sued by Mr. Dreier’s growing list of potential victims, lawyers said.

A lot of good and decent charities had all their assets invested with him; they are now broke !!

WOW!

 

Alleged victims

Those affected include banks, Wall Street investors, charities, and individuals.

 

Spanish Banco Santander's Optimal Fund lost over $3 billion.[41] [9] Swiss private banks lost £2.5 billion, of which one billion Swiss francs (£570m) were lost by Union Bancaire Privée, a Geneva-based private bank.[10][11]

 

Several charities were severely affected by Madoff's indictment. The $8 million Boston-based Robert I. Lappin Charitable Foundation, which had the bulk of its money invested with Bernard L. Madoff Investment Securities, closed its doors and terminated its seven staff members. Other charities affected by the downfall include The North Shore-Long Island Jewish Health System, which claimed to have lost $5 million, and The Julian J. Levitt Foundation, which lost about $6 million.[6]

 

Notable affected institutional investors:

 

Access International Advisors LLC and clients (through its "American Selection" fund, traded as "LUXALPHA SICAV")[42]

Ascot Partners hedge fund[13]

Banque Bénédict Hentsch and clients[17]

Banco Santander and clients (through its "Optimal Fund")[43]

BBVA (Banco Bilbao Vizcaya Argentaria) and clients[44]

BNP Paribas and clients[17]

Bramdean Alternatives hedge fund run by Nicola Horlick of London[45][13][46]

Fairfield Sentry Ltd, a hedge fund run by Walter Noel's Fairfield Greenwich Group[17][47]

Fairfield, Connecticut public employees pension fund[48]

Fix Asset Management[49]

Julian J. Levitt Foundation[6]

Kingate Global Fund Ltd, a hedge fund run by Kingate Management Ltd[47]

Robert I. Lappin Charitable Foundation[13]

Lombardier[50]

Luzerner Privatbank - und Vermögensverwaltungsinstitut and clients, of Lucerne, Switzerland, including "Reichmuth Matterhorn" fund[51][52]

M&B Capital Advisers (Spain) and clients[43]

Maxam Capital Management (including Maxam Absolute Return Fund), run by Sandra Manzke; Manzke has stated that Maxam has been "wiped out" and will close as a result of the losses[17]

NPB Neue Privat Bank (Zurich) and clients[17]

Nomura Holdings and clients[17]

Palm Beach Country Club[49]

Royal Bank of Scotland[10]

Sterling Equities, Inc. led by New York Mets co-owner Fred Wilpon

Tremont Capital Management[17]

Unicredit and clients[49]

Union Bancaire Privée and clients[10][11]

Judy and Fred Wilpon Family Foundation[17]

Notable affected individuals:

 

Stephen Abbott (San Francisco lawyer) and family[49]

Norman Braman, former owner of the Philadelphia Eagles football team[13]

Englebardt family of Los Angeles and elsewhere[13]

Stephen A. Fine, president of Biltrite Corp[33]

Avram and Carol Goldberg, former owners of the Stop & Shop supermarket chain[33]

Helfman family of Miami and elsewhere[13]

Robert Jaffe and family (see also father-in-law Carl & Ruth Shapiro) of Palm Beach and elsewhere[17]

Saul Katz, co-owner of the New York Mets[31]

Irwin Kellner, of Port Washington, N.Y.[31]

New Jersey Senator Frank Lautenberg and a charity he founded[31]

Susan Leavitt of Tampa Bay, Florida[3]

Loeb family[49]

J. Ezra Merkin, chairman of GMAC, and founder of Ascot Partners hedge fund[13]

Ira Rennert (billionaire), mentioned by Vicky Ward of Vanity Fair on CNBC on December 12, 2008 as being "heavily, heavily invested" with Madoff[49]

Ira Roth and family of New Jersey[3][dubious – discuss]

Carl and Ruth Shapiro (founder and former chairman of apparel company Kay Windsor Inc) and family (see also son-in-law Robert Jaffe)[33]

Richard Spring of Boca Raton[17]

Vincent Tchenguiz, UK real estate investor[45]

Thyssen family (including Thybo International fund)[49]

Lawrence Velvel, dean of the Massachusetts School of Law[31]

may he rot in hell

That sad part is, if I walked into a bank and robbed them of $1,000 I would do more prison time than this guy is going to get. He will get "life" due to his age, but if he was a 21 year old. He would be out of prison before he's 35.

NPR's noon or 11am show was talking about this today. The general amazement was that regulators knew of this and exactly how it worked, but it was just so complex that they never understood it to be illegal even though none of it made any sense. Regulators get paid so little that they just dont have the smarts to check on this type of fraud. At least, that was the shows overall opinion today. Shits too complex for me too!

That sad part is, if I walked into a bank and robbed them of $1,000 I would do more prison time than this guy is going to get. He will get "life" due to his age, but if he was a 21 year old. He would be out of prison before he's 35.

 

The most important thing is imo, not how much time he spends in jail, but how much money can the investors get back.

The most important thing is imo, not how much time he spends in jail, but how much money can the investors get back.

 

 

http://news.yahoo.com/s/ap/20081215/ap_on_...l_street_arrest

 

 

 

Judge signs order to protect Madoff investors

 

NEW YORK – A federal judge has signed an order saying investors who may have been duped in one of Wall Street's biggest frauds need the protection of the Securities Investor Protection Act. Judge Louis Stanton also directed that proceedings to liquidate the assets of Bernard L. Madoff Investment Securities LLC be moved to bankruptcy court. The order was signed Monday afternoon after the Securities Investor Protection Corp. submitted papers asking for the protection for investors. Stanton assigned Irvin Picard to preside as trustee over the liquidation. The order came just days after federal prosecutors charged Madoff with securities fraud, saying he had admitted squandering nearly $50 billion from investors in a massive Ponzi scheme.

 

 

 

 

 

Anyone have any insight into why he did it? Power? Just to see if he could? Mental Illness?

 

I heard that he didn't live some kind of super extravagant lifestyle, so then why?

NPR's noon or 11am show was talking about this today. The general amazement was that regulators knew of this and exactly how it worked, but it was just so complex that they never understood it to be illegal even though none of it made any sense. Regulators get paid so little that they just dont have the smarts to check on this type of fraud. At least, that was the shows overall opinion today. Shits too complex for me too!

 

 

 

B$....That fact that the entire SEC staff HAS NOT BEEN FIRED tells us something!! You mean to tell me they would actually use this as an excuse!!! They had a responsibility....a responsibility of the utmost importance. The purpose of having an SEC is to protect the nation from reckless, irresponsible and illegal activity...activity that threated and still threatens the security of our economic system. The failure of the SEC is a major part of the reason we are in this current economic mess!!! The guards were asleep at their post, and have allowed the invaders to breach the security of the gate. It is unbelievable to me that the entire American public is not in an uproar and demanding their heads along with the leaders of all the financial institutions now demanding a "bail-out" from the mess THEY CREATED!!!

 

The actions of the leaders of our financial institutions if not are, should be criminal. They have compromised the viability of our economic systems and in fact the economic stability of our country, and their actions have had a direct effect on the entire world's systems. The magnitude of their offense is almost incomprehensible. The continued safety & security of our financial systems rivals the importance of our military to the defence our our beloved nation. Would any of us accept this incompetence & laxity from those charged with the military defense of our nation???? NO WE WOULD NOT!!!!!

 

The actions of the leaders of our financial institutions if not are, should be criminal. They have compromised the viability of our economic systems and in fact the economic stability of our country, and their actions have had a direct effect on the entire world's systems. The magnitude of their offense is almost incomprehensible. The continued safety & security of our financial systems rivals the importance of our military to the defence our our beloved nation. Would any of us accept this incompetence & laxity from those charged with the military defense of our nation???? NO WE WOULD NOT!!!!!

 

 

You hit the nail right on the fcuking head. Its time to grab the pitchforks and torches and march on DC and wall street. When is it going to be enough? What exactly is it going to take before our citizenry realizes how fucked this country has become?!

The most important thing is imo, not how much time he spends in jail, but how much money can the investors get back.

 

Not even one cent on the dollar(only 200 million left) according to this article on Bloomberg. He wanted to distribute the rest to employees and family, but his sons turned him in before he got a chance.

Not even one cent on the dollar(only 200 million left) according to this article on Bloomberg. He wanted to distribute the rest to employees and family, but his sons turned him in before he got a chance.

 

Damn! I feel very sorry for the people who lost their money with this guy. It must feel terrible to go to sleep super wealthy, and wake up broke.

 

I understand Mr. Madeoff dealt primarily with super wealthy people, and funds. Abolfaz stated that some very wealthy people got wiped out. How can people with this level of wealth entrust all their money with one person? If one is smart enough to accumulate that level of wealth, isn't one supposed to be smart enough to protect it?

How can people with this level of wealth entrust all their money with one person? If one is smart enough to accumulate that level of wealth, isn't one supposed to be smart enough to protect it?

 

 

You have to understand who he was, his credentials etc, no one ever had a problem getting money back from him. I was told today that two years ago one of his big investors asked for all his money back since he had doubts about his investment scheme, once he got his money back his trust was renewed and he reinvested it all with him AGAIN!

You have to understand who he was, his credentials etc, no one ever had a problem getting money back from him. I was told today that two years ago one of his big investors asked for all his money back since he had doubts about his investment scheme, once he got his money back his trust was renewed and he reinvested it all with him AGAIN!

 

 

 

it would be like trusting RomanDads advice 10 fold

 

is RomanDad ever wrong??

The most important thing is imo, not how much time he spends in jail, but how much money can the investors get back.

 

Could be pretty bad... According to this article: http://www.thebigmoney.com/articles/news/2...adness?page=0,0 there's legal precedent that states that not only will the investors not get their money back, but they'll have to pay back any money that they made during the time Madoff had their money.

 

"The other is a legal precedent set in the Bayou case that should scare the heck out of anyone who once invested with Madoff but who managed to get out safely in the last few years: Any investors who managed to take out profits from a fund like Bayou before the fraud was revealed had to give the money back."

 

"Imagine that Rich Folks Capital Management—RFCM—placed its money with Madoff 10 years ago and then decided, five years ago, that something didn't feel right and pulled it out. Well, now RFCM is on the hook for any of its gains from the time before the fraud was discovered. But what happens if the people who'd invested with RFCM 10 years ago aren't the same as the people who invest with it now? Tough noogies. RFCM's current investors are probably responsible for paying back gains in the RFCM fund that they never even saw. Or, possibly, RFCM needs to go after its own former investors. No one's really sure."

 

Most likely gonna get really messy...

 

-R

B$....That fact that the entire SEC staff HAS NOT BEEN FIRED tells us something!! You mean to tell me they would actually use this as an excuse!!! They had a responsibility....a responsibility of the utmost importance. The purpose of having an SEC is to protect the nation from reckless, irresponsible and illegal activity...activity that threated and still threatens the security of our economic system. The failure of the SEC is a major part of the reason we are in this current economic mess!!! The guards were asleep at their post, and have allowed the invaders to breach the security of the gate. It is unbelievable to me that the entire American public is not in an uproar and demanding their heads along with the leaders of all the financial institutions now demanding a "bail-out" from the mess THEY CREATED!!!

 

The actions of the leaders of our financial institutions if not are, should be criminal. They have compromised the viability of our economic systems and in fact the economic stability of our country, and their actions have had a direct effect on the entire world's systems. The magnitude of their offense is almost incomprehensible. The continued safety & security of our financial systems rivals the importance of our military to the defence our our beloved nation. Would any of us accept this incompetence & laxity from those charged with the military defense of our nation???? NO WE WOULD NOT!!!!!

 

 

As for Madoff, IMO, no matter how much integrity or reputable a money manager person is, one should never entrust all of their money to that person because shit can happen. The manager might miss something and their fund could blow up on them or something. It happens.

 

 

 

 

As for Madoff, IMO, no matter how much integrity or reputable a money manager person is, one should never entrust all of their money to that person because shit can happen. The manager might miss something and their fund could blow up on them or something. It happens.

 

 

isnt a general rule that 10% max in any one place, and even thats a bit risky

Aaron Clarey (of the Captain Capitalism blog) goes into a lot of detail about the blatant corruption he saw in the banking system in his book. It's incredible, basically the banks ignored all their safety measures for making good loans, and then when they realized they could sell all the loans on the secondary market to investors, the incentive to make good loans went out the window and the incentive to just make as many loans as possible replaced it, because what would the bank care if every loan went into default? Someone else would be stuck with the bill. Unfortunately, the entire banking industry seems to have done this!