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- Bernard Madoff
- Investment Advisor / Swindler
- December 11, 2008
- Securities Fraud
- 150 Years in Prison
The arrest of Bernard Madoff:
His name rhymes with his crimes. He illegally "made-off" with tons of money from a lot of people.
For years, Bernard Madoff…
…passed himself off as a super-star investment advisor who scored huge gains for his clients. He literally had new investors begging him to handle their accounts too.
In fact, Madoff was running an old fashioned Ponzi scheme, in which he funneled the incoming cash to the early investors, making it appear he had a secret formula to making outsized gains while he was really just bicycling cash to their accounts. Government regulators failed miserably in not picking up his scam.
In the end, as do all Ponzi schemes, it collapsed. And when it all tumbled down, the amount missing from his client's accounts was a staggering 65-billion dollars, including the fabricated gains. (Actual losses were later scaled down to "only" 18 billion dollars.)
Madoff was arrested and charged with securities fraud…
…and pleaded guilty to eleven federal felonies.
Some of his victims are well known names, from the owner of the New York Mets', Fred Wilpon…
…to baseball great Sandy Koufax…
…and actor Kevin Bacon.
For others, it meant complete financial ruin.
Madoff later offered an interview to ABC News.
For running what's considered the biggest financial fraud in American history…
…Madoff received the maximum sentence of 150 years in prison.
He'll never walk free again.