Running Madoff scam thread

Ponzi scheme.
Goes back decades.
$50 billion.
Sons blew the whistle.
FBI.
Charities hit hard.
Many individual clients suddenly broke.
Mets ownership out $500 million.
One client killed self.

http://en.wikipedia.org/wiki/Bernard_Madoff

 

You take in money from people promising big returns.

You get other people to buy in and pay the original people with the new people's money.

Rinse and repeat.

Bottom line, instead of making money every month on investments, you are really paying people with the money from new folks.

 

Gotcha.

This also helped:

http://en.wikipedia.org/wiki/Ponzi_scheme

 

Most people were not cashing out because the returns were 10-12% a year. The scheme caught up with him when people started cashing out in July.

I think his kids gave him up as the sacrificial lamb. There is no way the old codger was creating statements and falsifying records on his own.

 

Judge denies gov't motion to have Madoff's bail revoked. Back to the penthouse.

 

My understanding is that the attributable list of related suicides now stands at five.

"Going up . . . "

 

Pathetic.

 

They showed a helicopter shot of his penthouse on CNBC this afternoon. The anchors were somewhat taken aback with the ridiculousness of it all.

 

The list of victims has been released

http://www.nypost.com/seven/02042009/news/regionalnews/full_list_of_madoff_victims_released_153545.htm

 

This list is just mindblowing. He might as well have put a swastika on his corporate logo, for all the Jews he destroyed.

 

I'm amazed he got Koufax's money. Who even gets to talk to Koufax?

 

I'm guessing he got to Koufax through the Wilpons.