Bernard Madoff Scandal

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A scandal involving the founder and president of New York-based Bernard Madoff Investment Securities and former chairman of Nasdaq surfaced on Dec. 11, 2008, when Bernard Madoff was charged by federal prosecutors with an alleged $50-billion securities fraud at his advisory business. He was also sued by the Securities and Exchange Commission.[1] On June 29, 2009, Madoff was sentenced to 150 years in prison for the fraud he committed.

A couple media outlets focused on the fact that Madoff's mother and father had their own financial troubles. Madoff’s mother's brokerage firm was forced to close after a run-in with the feds, while Madoff's father had his own tax woes about 40 years ago.[2]

In early February of 2009, a Spanish law firm that filed a U.S. lawsuit in the name of some of Madoff's victims said that there were up to three million "direct and indirect" victims worldwide of the alleged fraud. The estimate was said to be based on information collected from over 30 law firms around the world that were representing the victims of the alleged scheme in 25 countries.[3]

In mid February of 2009, the trustee liquidating the brokerage of Madoff subpoenaed 13 exchanges and clearinghouses, including the Chicago Board of Trade, trying to recover money for victims of Madoff's alleged $50 billion Ponzi scheme. It was not immediately clear what information he was seeking in connection with the liquidation of Bernard L. Madoff Investment Securities LLC.[4]

On Apr. 27, 2009, Madoff's market-making business was sold at an auction to Castor Pollux Securities LLC for up to $25.5 million, a fraction of what is was previously believed to be worth.[5]

On June 29, 2009, Madoff was sentenced to 150 years in prison. The judge said the fraud Madoff committed was so extensive that the judge needed to send a symbolic message to those who might imitate his fraud and to victims who needed relief.[6]

Resources

Resources


References

  1. Bernard Madoff, securities firm founder, charged with fraud. Los Angeles Times.
  2. The Ponzi Doesn't Fall Far From the Tree: Bernard Madoff's Crooked Parents. wowowow.
  3. Madoff Misled SEC in '06, Got Off. The Wall Street Journal.
  4. Madoff Liquidator Subpoenas 13 Exchanges, Firms. Reuters.
  5. What Cereal Are You? Job Interview Queries On Web. Reuters.
  6. Bernard Madoff Sentenced To Maximum 150 Years In Prison For Vast Fraud. Chicago Tribune.