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Bernard
Madoff Securities Fraud Investigation
Bernard Madoff was, until December
11, 2008, a well respected businessman, former Chairman of NASDAQ stock market, and the owner and Chairman of a brokerage
firm known as Bernard L. Madoff Investment Securities LLC.
Bernard L. Madoff Investment Securities,
which is in the process of liquidation, was one of the top market maker businesses on Wall Street, often
functioning as a "third-market" provider that bypassed "specialist"
firms and directly executed orders over-the-counter from retail brokers. The
firm also had an investment management division.
Madoff was arrested by the FBI
on December 11, 2008 on criminal charges of securities fraud, turned in
by his sons after he allegedly told them that his business was "a
giant ponzi scheme." The alleged behavior involves
an asset management unit of his firm, rather than the better known market
making unit.
The criminal complaint alleges
that investors lost $50 billion because of the scheme He was charged with
a single count of securities fraud.
Madoff was released on the same
day of his arrest after posting $10 million bail. He faces up to 20 years
in prison and a fine of $5 million if convicted. According to the SEC,
Madoff confessed to an FBI agent that there was “no innocent explanation”
for his behavior,[ and that he "paid
investors with money that wasn't there."
Those events have led to billions
of dollars in losses, and a firestorm of press and blog reports. Lawsuits
have also begun to be filed, not only against Mr. Madoff and his firm,
but against other advisers who put their clients’ money with Mr. Madoff.
Many law
firms have begun to conduct private investigations into the Madoff
fraud, for purposes of representing investors who directly or indirectly
invested with Madoff.
A collection of blog posts and
related stories follow
SEC Probes Its Conflicts with Madoff
SEC to Probe Its Ties to
Madoffs - WSJ.com
SEC Cox's Startling Admission
Madoff's Funky Account Statements
Investors To Sue Madoff's Introducing Advisers?
This Is Not "Hedge Fund Fraud"
Can we please get off the hedge fund bandwagon when talking
about Madoff. There
is absolutely nothing in the indictment or the SEC complaint, or any
of the main stream press or Madoff's
filings (as reflected in the press) that would lead one to the conclusion
that Madoff's investors money was in a hedge
fund.
Next Up -Madoff Investors As Defendants
Here they come...Madoff Third Party Lawsuits
Madoff tries to stay out of jail as probe widens |
Reuters
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