Thousands Of Investors Face Serious Losses Following Madoff Fraud

For years, investors, rivals and regulators all wondered how Bernard L. Madoff worked his magic.

But on Friday, less than 24 hours after this prominent Wall Street figure was arrested on charges connected with what authorities portrayed as the biggest Ponzi scheme in financial history, hard questions began to be raised about whether Mr. Madoff acted alone and why his suspected con game was not uncovered sooner.

Read the whole story here.

Comments

[hollybork]

Will this villain who lost $50 B and has shaken the world markets go to jail for as long as Martha Stewart, who saved less than $100,00 from her sale of stock? I wonder.....

[Vinca]

MY MOTHER ALWAYS TOLD ME < LIVE BY THE GOLDEN RULE

[schoolmaster]

I am sure that in many of the cases where the investors lost, it is only the overflow of their coffers which are secure. But the spread of this news of fraud will tell upon the small investors by further eroding the stock market.

[Cherubim]

From the Washington Times...Meanwhile the Issue of Poverty Has Vanished:
"But some lament that when he disappeared, so did the issues he championed, despite early promises from Mr. Obama to embark on a poverty tour and push the issue on the campaign trail.
"The word 'poverty' has not been used since John Edwards dropped out," said Jonathan Tasini, executive director of the Labor Research Association.
"When he ended his presidential bid in January in New Orleans, Mr. Edwards said that both Mr. Obama and Sen. Hillary Rodham Clinton had "pledged to me and, more importantly, through me to America that they will make ending poverty central to their campaign for the presidency."
He added, "More importantly, they have pledged to me that as president they will make ending poverty and economic inequality central to their presidency. This is the cause of my life, and I now have their commitment to engage in this cause."
Please go here if you wish to leave a comment about the issue of poverty:
http://www.washingtontimes.com/news/2008/dec/14/poverty-off-political-radar/

[myfatherschild]

They all fall down....


http://www.nytimes.com/2008/12/14/nyregion/14lawyer.html?hp

[happycat]

I am really troubled by some of the posts that I have read here. There seems to be an almost eery glee over tthe prospect of housands of investors losing their fortunes and life savings. Madoff and his family evidently were corrupt, and they were savvy at manipulating their investors into believing that their money was safe.

There are people who toiled as doctors, lawyers, businessmen and in other professions who entrusted Madoff with their funds. Many of these people worked hard for that money. The loss of their money will have a profound impact on the rest of the economy. - The housing market, travel, retail, just to name a few. I understand that there are millions of middle class and working class people in this country who have been suffering even longer. We are all in the same boat. Rich and poor. We have to look out for each other. Everyone is going to be affeted by the crumbling economy one way or another, and we shouldn't feel glee watching it happen to anybody.

[japrz]

If we (middle class and rich) are in the same boat together, they why are rich and corporations allowed to export American middle class jobs to a communist country (China) with impunity? It sounds to me like we are on the Titanic with first class passengers making off with the life boats (and the banking bailout money) and leaving the middle class behind with the bill for the bailouts, foreclosures , 401K that are now 201Ks and massive unemployment.

[Cherubim]

What happens to the poor underneath in the "belly" of the Titanic?

[local21]

I feel bad for the GOOD hard working people, rich or poor, that get taken advantage of.

[norkas]

People work hard rich or poor for ther money and there is NO excuse for someone stealing it.

The problem is that many know that if you want a big cover up and protection come to NYC and you will see a third world nation at work.

I hope those that were hit that are rich go after the SEC , Feds , in NYC and they will soon find out that in 1999 they already new about this and did nothing.

I hope the rich bring chages aganist the feds and sec and make them pay for ALL those that lost because of a cover up.

Do not trust any of the big lawfirms that may be involved in this or other cover ups.. It takes power and money to cover up in NYC and a lawfirm to payback favors.

I know of a multi billion fraud that has been covered up where consumers could still get there money back if they knew about it but the feds made sure they NEVER will. Some people are still trying to uncover this fraud with has money laundry in the millions paid for bribes to support the billion dollar fraud. This was a 100% proof in this case and consumers and business were defrauded all over the world.

Please i truly hope the rich will go and hang those who decided to put a cover on this one. Many people lives were destroyed in this ponzi.

[TAIsabel]

Something does not make sense here. This guy has been constantly investigated and his books appeared to be fine. Two possibilities: 1. Regulators had their head up their ass and did not know what to look for. 2. This guy has siphoned off the money and it is sitting in an account somewhere in the Bahamas after "legitimately" delivering 10% return.

Perhaps investors should abide by the laws of risk/return and not be such pigs.

[japrz]

Or, 3. The Republican administration told the regulators to stand down and not do their jobs. Just like they did with all the other government regulatory departments.

[Cherubim]

I think the answer are numbers: 2 and 3.

[adv2int]

Is anyone watching "Crash: The Next Great Depression?" on the History Channel?

It explains how we got into this financial mess.

[tzbar]

Yes I did. With all the crooks we have now , I don't know if we will be out of the Depression in 10 years.

Obama is great, but he can't walk on water....

[LiberalBuzz]

I'm sort of curious, the WSJ,(owned by Murdoch) made the claim that he had made large donations to Democratic organizations and Democratic members. It seems odd that someone in that position would not be covering both sides of the aisle.

So is there anyway to find out the truth?

[tomas0808]

Cash n Carry Made-Off with our money

[in4success]

just in time to make the bush pardon list.

[workingboy]

What timing! Just as we hear pols moaning about the hourly wages of auto workers, this scandal breaks. Haven't heard a peep from a pol about this. Mr. Made-Off may do a little time in a country club prison then he'll be out to a comfortable life. That's why they have those nice banks in Switzerland.

[happycat]

Madoff is going to go away for a long time. There are a lot of very rich and powerful people who entrusted him with their money, and some of them lost everything. Those people will not be satisfied until they have Madoff's head on a platter.

[LiberalBuzz]

At 79 he will die in prison.

AND there is no such thing as a country club prison. I keep wondering why that rumor still persists. Federal prisons USED to be quite a bit better than state prisons but were nonetheless prisons. A lot also depends on the level of security you are required to serve time under.Minimum, medium and maximum.

BUT tell ya what. Next time you think federal prisons are a country club look up your nearest one. They aren't everywhere but if there is one near you, some of the actually allow tours. Yes I know, hard to believe but I took one at Lompoc Minimum security a few years ago and if any of you consider that "country club" YOU can have it.

God only knows what the Maximum is like. And we all already know about super max's.

[in4success]

they should direct some of their outrage and action toward the crooks responsible for deregulation. this would require some introspection in many cases, nevertheless.

[tzbar]

The safest place for Madoff is Jail...

Sorry for all the people who trusted him with all their billions and lost it all. How will they adjust to shopping at T.J. Max ?

[Mezzeta]

They are powerful and they WILL be asking for Fed funds to make them 'full' again.

[tomas0808]

The collapse of Reagan inspired Casino Capitalism is gonna get Ugly. It will be The Great Leveller. I'm afraid a total collapse is the only way to return some value to a persons physical labor

[bethel1974]

this is your bailout money. Part of it went wherever Madoff was directed to send it. He is the fall guy.

[peterg76]

You didn't think Paulson embezzled a trillion dollars just because of housing prices, did you?