Madoff Didn't Invest In Any Securities For 13 Years!

[remedy1]

Incredible!

Madoff didn't buy one security in the last 13 years. It was ALL made up. Everything! Every statement he sent to his clients was a total fabrication.

And the SEC couldn't figure it out...




Madoff Didn't Invest In Any Securities For 13 Years!
John Carney|Feb. 20, 2009, 11:08 AM|3
Tags: Investing, Bernie Madoff, Fraud, Scams, Scandals

The latest news coming out of the Madoff Trustee and Creditors meeting that started at 10 am this morning in the auditorium of the United States Bankruptcy Court, Southern District of New York is simply staggering.

* Madoff's operation was enormous, taking in 2,350 clients.
* For at least 13 years, no securities at all were purchased on behalf of those clients. That means that every single transaction recorded, every cent of gain was simply made up out of thin air.
* The Trustee has no idea how long it will take to figure out what assets may be recovered for the victims.

There are some bright spots.

* Trustee Irving Picard said he has recovered $650 million.
* Victims could qualify for up to $500,000 in funds from the Securities Investor Protection Corp.
* Picard says he wants to sell off its market-making operation in “a matter of weeks.”


http://www.businessinsider.com/madoff-didnt-invest-in-any-securities-for-13-years-2009-2

[seemslikeadream]

1. No one chould imagine

same ol same ol

[natrat]

2. sounds like the whole firm was in on it

[GregD]

5. Any idea how large the staff was?

It seems you are correct - this could not happen without basically everyone knowing inside the firm.

[ThomWV]

7. How many people did the firm employ and does anyone know how it was structured?

I'd love to see an orginizational chart. Its just unimminaginable that someone didn't understand enough accounting to notice that there was something missing if they were an investment company - that being someone who actually bought and some securities. It would appear that all they had was an in-box, and out-box, and a checkbook in the middle.

[Ex Lurker]

6. SIPC insures the securities, not their value

if the securities are worthless, the investor gets a piece of paper, nothing else.

[jtbrick]

3. So this had been going on since at least 1995

and the filthy, dirty, corrupt Bush administration's SEC just looked the other way?
What is the argument against investigating Bush/Cheney again?

[zagging]

4. Security

Jumbo Shrimp, eh?