Not just super rich caught up in Madoff case

Don't cry too hard for the Jewish charities, I wouldn't be surpised if they were in lock step with this Jewish criminal.

I am sure he will flee to Israel, maybe he will be pardoned down the line like Marc Rich was.

http://www.benjaminfreedman.net/ 

Maddoff has friends in VERY high places.  You can bet that most of his money is hidden, and that he will never ever go to jail, and that he will head off to some undisclosed location in the very near future, and, ultimately, the American taxpayer will pay billions to cover his fraudulent activity.

I learned the truth at 17.

Can someone tell me how this was uncovered? Unless I missed it, the article didn't say. I've been sick so I haven't followed current events in a few days. 

There are some pretty high profile people/companies on this list, including my US Senator. WOW!

Sebs - His children turned him in.  There is some speculation that they could have been involved  but, are playing uninvolved in an effort to retain some ill gotten wealth.  They were longtime employees of the fund also.  He tried to give them $200 -300MM just before the gig was up.

What gets me in this is the audit and regulatory failure.  This guy along with Goldman Sachs never had a down year until now.  This alone strikes me as questionable.  It is too good.  The investment banks had a CMO ponzi also.  This scam targeted public money, 401K, and Pensions.  Keep any money you have left closer to home.

hadenough -

Your name is appropriate.  People have had enough of blatant anti-semitism such as yours.

All hedge funds are ponzi schemes....Madoff may be the first to come out....but he won't be the last. It must be tough to be wealthy one day and broke the next....pretty humbling........ and a hard lesson to learn.

Its absolutely amazing how one man can be responsible in creating and orchestrating a multi $billion international Ponzi scheme with a ripple effect worldwide. Especially with highly financially sohpisticated and knowledgeable victims.

 All the pieces have not been put together in this puzzle yet and when it's finally complete, you can bet there will be more complicity with others involved.

What is amazing to me, is that anyone would believe that $ 50 billion dollars just evaporated!

No, it's got to be somewhere !  The goal should be tracking that money down and not assuming that it is all lost !!!!

I think that there is still a prison down in Cuba, where the information could be extracted ???

It's just amazing that all this greed and corruption and missed used funds is all during the 8 years span of Bush Politics- good, bad and the ugly.  When the economics goes south, its like a lake that is full  and when it recides, all the bones are exposed.  Sorry to say but but this is just the tip of the iceberg, more to come? Bottom line Republicon or Democrat, government is nothing but a referee and should set guidelines and regulate for the good of the country, for the country, to the country.  Our polictical system if viewed from afar, is starting to play to those who feel America is nothing but  self-serving, greedy, oppressive for there own good and not really about anyone, anything, but themselves or there buddies. Then, One begins to ponder the unrest in the world and the low ebb of America in general- this country is looking alot like Rome in its hay day- Gee, don't think so, the list of un-American activities is growing- Who to blame, ourselves and we can't do anything attitude- Jig is Up????  I to  responsible, first time voted in 34 years, Obama, looks like time to revisit the 60's. Time to kick some corporate and government ass- way out of control- www.change.gov- for any ideas. Rome you say, lust, greed, corruption, drunkness, morality, brides, pay for Play, and the list goes on. If it starts at the top, then it seems ok for the lowers to play to.  Local- State- Federal, beyond believe???

$50 Billion is a lot of money. There must be a large number of "investors". I wonder how many other "ponzi schemes" there are to be uncovered? He would have kept it going as long as he still had money, so I suspect that none is left. Too bad for the gullible people.

That's too bad. I was hoping it was limited to the super-rich.

How can you feel sorry for people that invested money and then were too stupid to keep him accountable for his actions.

I'm not really sure what you're talking about but most of the people that lost money weren't really in a position to be aware of this type of fraud.  The SEC themselves didn't even know about it.

What is amazing to me, is that anyone would believe that $ 50 billion dollars just evaporated!  No, it's got to be somewhere !  The goal should be tracking that money down and not assuming that it is all lost !!!!

There never was any $50 billion.  Just like the majority of "money" in any fiat based system, it doesn't really exist.  That's why when you have runs on banks they can't pay - the actual money doesn't exist.  This $50 billion in this case was simply conjured up gains and numbers on a spreadsheet.  Sure he skimmed off the top but it wasn't as if people gave him a suitcase with $50 billion in it and now the suitcase is empty.

Yes, Jews were likely fleeced. BUT (a HUGE BUTT), the ones who were simply wave their magic wands and poof the money reappears. So, what the hell?

I must ask, for whom do you steal?

Thanks Alaska Tom for the info.

So his kids turned him in. HA! Take all their money away--it isn't theirs to begin with--and give it back to the charities and organizations who are now defunct.

Like checkerbattery said, there isn't any money until you cash out. In this digital age, it's all virtual money. Similar to receiving your salary via direct deposit, paying your bills through EFT, and shopping with your Debit card--no money ever changing hands, just numbers.

Absolutely baffling that the SEC never checked this guy's books. As I understand it, he was working as a financial adviser which would make his books open to oversight.

checkerbattery,

Well Said! I would add only the following:

1. Hedge Funds are designed as "discretionary" and also "non transparent" entities. It is easy not to see whats going on with them beyond the statement. They are not regulated by anyone like mutual funds, and often are involved in highly questionable and risky investments such as futures, leverages and derivatives. This is also why so many trusts and charities got burned - they need to be at arms length from the funds. So NO THESE PEOPLE ARE NOT MORONS< THEY WERE JUST GREEDY.

2. You are dead on that the money lost never existed. JUust like a bank that creates money with the stroke of a computer when you make a deposit or take a loan, the funds on the investment statements are not earned money - but created money. Not as SEBS notes up above, virtual money, like that in a bank, but money that is created out of "thin air" - because this guy said it existed. The truly scary part is even after this mess so few people actually understand how ouor monetary system works, and who controls it!! If you are looking for a gullible moron you probably don't have to look much past the mirror ... since we are all suckers in this huge ponzi scheme!.

Can we please all Agree to start prosecuting all the Wall street Thief's running these banks.  Send every CEO and board walking at any firm that has taken money from the TARP or the US tax payer.

Wall Street must pay the price for crimes against against the America people!

Bernie, you're right.  Ethics has taken a back seat to greed and not just on Wall Street.  It has become very prevalent to negotiate in bad faith and to lie, cheat and steal from anyone.  I'm not sure who I trust anymore.  Even trusting your own common sense won't protect you because the rules of the game have changed

Nothing is foolproof.  Get people's personal guarantees on everything, so you can look through any corporate veil.  Also get the guarantee of any Trusts, if any exist, to look through to the assets and make sure it is executed by an authorized signatory.

Unfortunately, relying on a handshake and a promise has become passe and toothless.  It's about survival now and no one in this world has your best interest in mind like you have to.

I think, as a society, we are reaching a breaking point in terms of civility.  People like Madoff may be dealt with in a different way by the people he took advantage of.  An eye for an eye.  Congress and elected/appointed officials at the federal, state, county and municipal levels are all very greedy and have forgotten who they are supposed to serve, other than  themselves.                                                                                                     

From Wall Street to Main Street, greed has been, and still is, the Name of the Game.

We can't say only Wall Street is greedy.  Look at all the "Main Street" people who bought houses they couldn't afford.

A millionaire fraudulenty trying to make millions more (billions more even) by fraudulent schemes isn't that much different that someone making 50K fraudulently completing a loan document on a 500K house, having no intention of every actually paying for that 500K house.

Greed is the way most people live.  But not me.  I am perfectly happy in my small but comfortable apartment with my 10-year-old paid for car and my 20=year-old TV.  To look at me, you would think I might be hard-pressed for cash.  But, I'm just living happily slightly below my means.

Besides, I sleep very well at night and can look at myself in the mirror each morning and see an honest, hardworking person. 

Wonder if you would feel the same way if you lost your job and had no other means to produce money. Try living out of that car since it is paid off, but wont get to far since you would have no money for gas huh?

Greg - We live very simply, too, but none of us are immune from this financial mess that greed and power have created in this country. It may be easier for us to survive the worst, but we are all going to be affected in some way.  We are all aboard the money train and it seems it is running out of track!  I'm holding out all hope for the future but the next couple of years are going to be very difficult.  Hang in there.

Blue Collar, I know things are tough, but:

Proverbs 27:12 (King James):  The prudent see danger and take refuge, but the simple keep going and suffer for it.  (Living Bible, same verse):  A sensible man watches for problems ahead and prepares to meet them.  The simpleton never looks, and suffers the consequences.

In today's work paradigm, none of us can even, in our wildest fantasies, buy a house and assume we will always have a job to pay for a house.  Those days are long, long gone.  We must prepare for everything.  If a person buys a house and has no plans to pay for that house, other than the assumption that they will have income from an employer, then they are delusional.

S Sarver,

True, we are all going to be impacted, and we will all have to pay higher taxes or be thrown in jail.  Which is even more reason to be prudent with our expenditures.

Best to all.  By the way, whether you are particularly religious or not, Christian or not, the book of Proverbs has amazing wisdom for anyone.

Greg, 

the best part of the bible, is how little we have evolved in 2 and even 3 thousand years. Most of the lessons and stories  could be about today.... The truly sad part is that if we actually took some of what is in those books to heart we might actually change! 

As for the higher taxes - its getting to the point we need to tell these guys that we are pissed off with the way things are going. Not the weasels in  the media who keep telling us that the guys on top are alot smarter than us, and have it all figured out, but start really voicing our displeasure in a way that they can't ignore.

Lennon had it right - "they keep you doped with Sex, Religion and TV" - time to put up or shut up!

BINGO!  You got it right.  It's about greed and I am certain that more than a few knew this was a PONZI scheme being played on Wall-street.

This event pales in value to the largest PONZI on-going scheme --- The Social Security System, and it is even legal(?)

Whats the difference between this and the entire fractional reserve banking system? The Housing / Real Estate Industry? The Derivative Trading Industry / Hedge Funds?

These are all elaborate schemes that promise above average returns while creating fake money in the form of illusionary collateral that they pretend has value .... We allow more than 50% of our economy to be turned into a ponzi scheme of which we are all victims, and then complain about this loser?  

SEC chairman Cox is a flexible man and is open to many options and offers.

What is the source of your understanding and its credibility?

Lyras - I suspect you are more correct in this statement than we will ever know.  Exposing it is key to getting back on track.  As should have been learned in 1929, you can't buy trust.

of course it is.... buy low, sell high.... you get in at the bottom, wait for all of the suckers to put in their money... get out when it gets high enough...the smart bail.. dropping the stock.. and it starts all over again with new suckers.  It's a simple premise.  I avoid the stock market like the plague.  I don't trust anyone with my money.  It was too damn hard to earn in the first place.  Rip-off artists are everywhere!  My charity money goes to local charities where I can walk in and SEE where my money goes (and even then, I'm sure I've paid for a few bills that weren't legit).  God started us, and then walked away when he realized we were loaded with every deadly sin there is.  I don't blame him ONE BIT. 

There are days when I wonder if the whole system isn't just a giant Ponzi scheme.

Actually it is.  All fiat based currencies are essentially ponzi schemes.  That's why we can have runs on banks and they're unable to actually pay you your money.  This is what we were trying to prevent with the financial bailout.  As they say with all scary stories, check out the "Money As Debt" series if you dare ;)

No. No need to worry, the man has gobs and gobs of it stashed away.  His foundation money is a completely different subject.

Another good investment might be canned food.

Yeah, he's a genius...until his mattress goes up in flames.

As long as his bed is a "no smoking" zone I doubt thast he has to worry about it..

Stay away from energy and cost saving candles and burning the pot on the stove! Yikes, don't keep your nestegg in the house even if you have a completely fire proof and burglar proof safe anchored to or in the the concrete floor. Even then creative thieves will find a way to get it like a home invasion and use of force to get you to open the safe.

Judi - one more nail in the coffin of fairness..  The crooks who steal millions go to the federal prison at Eglin AFB in Florida where they are subjected to a cottage style living arraingement and further subjected to things like a golf course - a swimming pool and most of the other frills in life whilee the kid who knocks off the local convenience store for a couple of hundred bucks gets a 6' x 8' cell in a 50 - 100 year old prison..  Money talks and the rest get hard time....

Thanks Jimbo, for your comments. They are great. I didn't know what the white collar prisons were like, but I suspected that. How can this kind of injustice be tolerated?

And more to the guy with the Jewish obsession. I don't think Hitler was a Jew. And I know that George Bush and his cronies are not. Get over it. Your prejudice against Jews is just that--prejudice. There is no way to deny it. For every crook who is Jewish that you can name, I can name a great person who contributed to world culture that is Jewish. And, PS--- I am NOT Jewish.

He had been audited several times and reported to the SEC on numerous occasions.  However, the SEC chose to do nothing about it.  Just goes to show you that the entire system is corrupt.  If they would start imposing the death penalty for these crooks then maybe, just maybe they might think twice about doing these things. 

These crimes were committed in the hayday of deregulation.  We need to turn a more critical eye to those who espoused deregulation to try to discover what their motives might have been.  Some of the same characters promoted 'TRICK'le down economics.  Time for some common sense ecomonics!

John , are you Jewish?

Judi - - it has NOTHING to do with greed on your part - but the mortgate lender that sent you and many many others down a path that would end up hurting them over the long run... That is where the greed is...   It has nothing to do with a person's ethnic or religious background as it has hurt people regardless of what colr thier skin is or what church / synagoge they attend..