BERNIE MADOFF PONZI SCHEME: Victim List Grows

UPDATE 2/4/09:

The full 162-page list of Madoff clients and customers compiled by restructuring firm AlixPartners has been released. See the list here.

Also, questions are being raised about whether Madoff actually executed any trades at all or whether the whole scheme was a version of a virtual reality game. Read Charles H. Green's blog on the topic.

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The Bernie Madoff ponzi scheme is hitting both individual investors like Senator Frank Lautenberg, owners of the NY Mets and the Philadelphia Eagles as well as major markets throughout the world. Even one of Steven Spielberg's charities has been exposed to the Madoff scandal. Read the reports below and see the slideshow:

Clusterstock has a comprehensive list of all of Madoff's victims:

Word on the identities of Bernie Madoff's clients / victimes continues to emerge. Please add new names to comments (or via email to [e-mail]).

HSBC "has emerged as one the largest victims of Bernard Madoff's alleged fraud with potential exposure of about $1bn to the investment manager's collapsed venture...HSBC's exposure stemmed from loans it provided to institutional clients, mainly hedge funds of funds, that wanted to invest with Mr Madoff. HSBC's direct exposure is believed to be about $1bn in loans provided to clients who invested some $500m of their own funds in Mr Madoff's venture. Under the typical terms of these deals, if the US authorities recover any funds from Mr Madoff, HSBC will be paid first, with its clients suffering the first tranche of losses." (FT:)

• • • • • • • • • • • • • • • • • Actor Kevin Bacon and wife Kyra Sedgwick lost their investments in Madoff's massive Ponzi scheme.

The AP writes about world markets affected by Madoff:

Europe's stock markets rose modestly Monday amid renewed hopes for a U.S. auto sector bailout, but the gains were limited by worries about the exposure of financial institutions to an alleged $50 billion fraudulent investment scheme in the U.S.

The FTSE 100 index of leading British shares was up 34.40 points, or 0.8 percent, at 4,314.75, while Germany's DAX was 72.11, or 1.6 percent, higher at 4,735.48. The CAC-40 in France rose 20.30 points, or 0.6 percent, to 3,233.90.

Europe's indexes were underperforming those in Asia. Tokyo's Nikkei 225 index jumped 428.79 points, or 5.2 percent, to 8,664.66 points, and Hong Kong's benchmark Hang Seng index added 288.56, or 2 percent, to 15,046.95 points

The Wall Street Journal writes about high profile individuals who were exposed to Madoff:

Investigators dug through financial records at Bernard Madoff's investment firm as the list of victims of his alleged Ponzi scheme widened to include real-estate magnate Mortimer Zuckerman, the foundation of Nobel laureate Elie Wiesel, Sen. Frank Lautenberg and a charity of movie director Steven Spielberg.

...Monday morning in Tokyo, Nomura Holdings Inc. said its exposure to investments with Mr. Madoff totaled 27.5 billion yen ($302 million). A spokesman described ...

Over the weekend, The New York Times reported more people involved, including the owners of the New York Mets.

The list of prominent fraud victims grew as well. According to a person familiar with the business of the real estate and publishing magnate Mort Zuckerman, he is also on a list of victims that already included the owners of the New York Mets, a former owner of the Philadelphia Eagles and the chairman of GMAC.

The CBS Early Show spoke today with some of the less famous names that have lost money in Madoff's scheme.

WATCH:

Watch CBS Videos Online

Comments

[rich misty]

03:14 AM on 12/19/2008

Another GOP free market spike into the heart of America

Republicans are cheering the demise of their number one enemy: America, Americans, and American institutions. Madoff is a Republican hero in the same class with Ollie North, Gordon Liddy, Duke Cunningham, Scooter Libby, Jack Abramoff......................

[BentOver4Corporate]

03:05 AM on 12/19/2008

I'm all for public hangings, televised would be nice. Maybe like a Saturday night reality show. Unfortunately, if taken in order of despicable offenses, Madoff wouldn't even be at the front of the line.

And yes, it was greed that Madoff was driven by, but also the greed of the 'savy' investors that helped get them to where they are.

As was mentioned, the real losers here are the charities, and all the people that they help. Those numbers can never be figured into the equation. The extremely wealthy still have plenty to live lifestyles most of us will never know.

People like Madoff are sociopaths, that, in my opinion aren't unlike child molestors in that they can never be rehabilitated, just locked away forever. It wouldn't have mattered to him if he was ripping off the wealthy or selling children into sexual slavery. A buck is a buck after all.

I really do like the pubic hanging idea.

[johnsmith747]

09:30 PM on 12/18/2008

I would check out the NGO’s that got “bilked” by Madoff. He may have bilked somone, but I would venture a bet that the NGO money he received was simply laundered and sent to Israel Banks/Government.

Madoff was simply a launderer for Jewish NGO’s money not a bilker of same NGO’s, unlike what is publish in the US occupied Media.[ZOG (see also web page http://www.irmep.org/pdf/tec.pdf)]

Further, the Jewish NGO money sent to Madoff, no doubt came VIA TAX EXEMPTION AND/or GOVERNMENT TAX PAYER MATCHING GRANTS.

Sadly, what I have mention is obvious to all except our Federal Gov. Enforcement.

Madoff, a very committed Jewish Zionist , served as the treasurer of two leading Zionist organizations. Like Richard Fuld of Lehman Brothers, Sanford Weill of Citibank, and Maurice Greenberg of A.I.G., the major culprits behind the $2 trillion bail-out, Madoff is another New York Zionist Jew who has committed a massive financial fraud and cheated Americans and others out of untold billions of dollars. (see Yeshiva Bank of NY)
sjg

P.S Look where all the money from the Individuals at these Wall Street banks went. I bet Israel has most of it. I bet some will even come back to US to influence political races. (Via the media outlets.)

[TestyOne]

01:22 PM on 12/18/2008

A bailout for all of the victims of this fraud is needed! The fund is so large that it has global implications. It will affect the trust that foreign investors have for American funds and securities, which will have dire consequences for future capital investment. Not to mention, the all of the charities that are affect. The money was supporting good causes through out the world. And as a final note, one must remember Ronald Reagan’s “Trickle Down Theory”. The rich people in this country are the ones that create economic growth and jobs. If the rich people have more wealth everyone benefits. Please write to your Congress person to support a BAILOUT that will help create economic growth!!

[nezumi]

01:38 PM on 12/18/2008

Now, do we really need a bailout? First, many Madoff investors had their money with Madoff for decades and lived off the interest rather nicely. An interest of 10 % reaches, in sum, the amount of the pricipal after ten years, if you take it home. So everyone in with Madoff for the longer term made a sizeable profit (it will make your eyes bleed calculating it) even with losing the principal in the end. A Ponzi Scheme is not that bad for early investors who can pull at least some profit out of the scheme.
So now they lost the principal. Awww shucks.

[anniston]

05:01 PM on 12/18/2008

These charities are nothing more than tax dodges. There is no money left according to Madoff. When this finally unwinds, we will a have to add prisons.

[humorgazette]

12:38 PM on 12/18/2008

Boston Herald satirist John Breneman here.
I've just uncovered another investment scandal:

Potsie loses millions in Fonzie scheme

http://www.bostonherald.com/blogs/entertainment/satire_report/index.php/2008/12/18/potsie-loses-millions-in-fonzie-scheme/

[enna]

09:18 PM on 12/17/2008

This is so cool. A lot of rich guys getting a taste of what it's like to be impoverished by corporate malfeasance. Perhaps it will teach Wall Street that it pays to keep an eye on each other.

[JoeDoorman]

08:54 PM on 12/17/2008

Steven Spielberg lost some write-off money!
Say it ain't so!
Our government should pay back Mr. Spielberg with interest!
Steven Spielberg is the greatest human alive in this universe.
I have always been against the death penalty in the past, but now that Mr. Spielberg has gotten bruised, I want Madoff beheaded and his head sent to Hollywood.
Mr. Spielberg can do what he wants with it.

[balrog221]

07:14 PM on 12/17/2008

insult to injury

[2008CaliforniaFan]

06:36 PM on 12/17/2008

If there was ever ONE GUY the Bush Administration SHOULD have had an 'illegal wiretap' (research)
on... THIS should have been the Guy. Don't tell me your Detectives with earphones never heard of these rumors... on Your watch?

Cheney must have had some NOTES on this guy in his Little Black Book.

[jalowe1957]

06:18 PM on 12/17/2008

There are no victims in a Ponzi scheme. Only gullible and greedy volunteers.

[HARVIN]

04:34 PM on 12/17/2008

"It's a great story for our time.Under my direction it can be a great film.Now...who do I get to play Bernie....?" Steven Spielberg

[cruisepuppy7452a]

04:23 PM on 12/17/2008

I hate to say it, but if it looked too good to be true, it was and had to be. In this case, it was. Now, hundreds of innocent victims have been robbed, lost in some cases, everything, with zero chance of recouping thier losses. Any organization that comes off that slick you run like hell from. This guy put in enough flaws to make it seem legit. In this case, the guy played on the victim's greed, as well as his own, fleecing them with no guilt whatsoever. That kind of person is called a socio path. You can't reform them as they don't see the wrong in thier actions. The only recourse is to federally jail them, freeze thier assets and that of any family member, seize any and all accounts here and abroadm praying he doesn't have any money tied up on rora touga. If that is the case, that money is totally gone, and untouchable without the guilty party physically going there to retrieve it, and then it might not happen. Guys, this was a hell of an expensive lesson.

[Dadaba]

03:59 PM on 12/17/2008

Like some, I don't understand how an individual could take huge amounts of money belonging to others and not feel a damed thing about it. But then again, as they say, if it seems too good to be true it probably is. There's no doubt that greed is what led all these people to invest in what turned out to be a ponzi scheme. I feel sorry for all those charitable organizations and foundations that have lost money here.

I wish they would lock him up in some miserable place like Guantanamo Bay prison - and throw away the key - but I know that is just wishful thinking on my part.

[djgonebad]

03:30 PM on 12/17/2008

This guy was good!

Although his output was "to-good-to-be-true", greed got the better of some pretty savvy people on the list.

I feel for the non-profits doing good for humanity, but the other filthy rich can always get more, so who cares?!!! And if they can't, there's always the service industry. GO GET THE MOP!!!

[Pike]

02:28 PM on 12/17/2008

His longstanding customers must have made a profit or have had their invested money back if he paid them 12 to 13 percent a year.
Madoff the fraudster has stolen a lot from old aged pensioners. Could there be millions of pensioners that have been robbed of their money?
This fraudalent monster has to be severly punished to become a serious deterent to other thieves.