carl0s Posted January 10, 2009 Share Posted January 10, 2009 I searched the forum for "madoff" and got no results. Surely this has got to be the most amazing/shocking story ever? I'm utterly mesmerised by the whole thing and all the massive implications to the financial world. 50 frickin billion. All that profit that all these people and companies thought they had, the suicide of the fund manager, and Harry Markopolos' letter spelling it out years ago "bernie madoff is running the world's largest ponzi scheme", which was ignored. I'm constantly on bloomberg on my iPod touch reading about it. Nobody else find it interesting and think it's unbelievably significant/major? The missus just goes "oh" Link to comment Share on other sites More sharing options...
The Raven Posted January 10, 2009 Share Posted January 10, 2009 huh Link to comment Share on other sites More sharing options...
Jay_vr6 Posted January 10, 2009 Share Posted January 10, 2009 the simple hustles always work best Link to comment Share on other sites More sharing options...
Supra-Brett Posted January 10, 2009 Share Posted January 10, 2009 I searched the forum for "madoff" and got no results. Surely this has got to be the most amazing/shocking story ever? I'm utterly mesmerised by the whole thing and all the massive implications to the financial world. 50 frickin billion. All that profit that all these people and companies thought they had, the suicide of the fund manager, and Harry Markopolos' letter spelling it out years ago "bernie madoff is running the world's largest ponzi scheme", which was ignored. I'm constantly on bloomberg on my iPod touch reading about it. Nobody else find it interesting and think it's unbelievably significant/major? The missus just goes "oh" Sorry, havnet a clue what your on about, give us a web link Link to comment Share on other sites More sharing options...
Kranz Posted January 10, 2009 Share Posted January 10, 2009 Oh Sorry, havnet a clue what your on about, give us a web link Send me £10 and I'll send you the excellent link. Then you can send it on to 5 other people for £10, and keep £2 from each person, sending me the other £8.... okay? Link to comment Share on other sites More sharing options...
Gaz Walker Posted January 10, 2009 Share Posted January 10, 2009 It is hugely interesting yes I agree, but not much about it on UK news Link to comment Share on other sites More sharing options...
AndrewOW Posted January 10, 2009 Share Posted January 10, 2009 Here: http://tinyurl.com/9pssmw Nothing short of incredible fraud IMO, but I suppose it's not surprising when all the banks have been doing something like that to each other for years, hence the credit crunch. Link to comment Share on other sites More sharing options...
AndrewOW Posted January 10, 2009 Share Posted January 10, 2009 Send me £10 and I'll send you the excellent link. Then you can send it on to 5 other people for £10, and keep £2 from each person, sending me the other £8.... okay? Great! Can I have your Paypal details to send you the tenner? Link to comment Share on other sites More sharing options...
Kranz Posted January 10, 2009 Share Posted January 10, 2009 Great! Can I have your Paypal details to send you the tenner? Yeah, its [email protected] Thanks Link to comment Share on other sites More sharing options...
colsoop Posted January 10, 2009 Share Posted January 10, 2009 I found it quite interesting too. I couldn't believe the banks and investors could be so naive as to believe the returns that the fund was supposed to be delivering. Link to comment Share on other sites More sharing options...
AndrewOW Posted January 10, 2009 Share Posted January 10, 2009 I found it quite interesting too. I couldn't believe the banks and investors could be so naive as to believe the returns that the fund was supposed to be delivering. Well, if you only found this 'quite interesting', then maybe I should refer you to this thread instead http://www.mkivsupra.net/vbb/showthread.php?t=173486 Link to comment Share on other sites More sharing options...
carl0s Posted January 10, 2009 Author Share Posted January 10, 2009 Harry Markopolos sent this letter to the US Securities & Exchange Commision in 2005, which was a follow up to one he sent in 1999. It's pretty blatant and to the point that Madoff was a scammer. His letter was basically ignored. One of the fund managers who invested his clients money ($1.4bn IIRC) with Madoff commited suicide when Madoff came clean just before Christmas that he was running a scam. Madoff had been running a Ponzi scheme for the last 14 years. He took billions of dollars from new investors, and used that money to pay the previous investors their "profits" which they thought he had been earning them from investing for them as a fund manager. It's a bit like a pyramid scheme, but more of a vertical line than a pyramid. It's affected banks all over the world (RBS, who I've invested in, have lost $400m I think), charities, general rich people like Hollywood people, and other investment funds whose fund managers thought they were privileged enough to be given the honour of having Bernard Madoff manage some of their client's money for them. Link to comment Share on other sites More sharing options...
carl0s Posted January 10, 2009 Author Share Posted January 10, 2009 $50bn basically wiped out. Nuts. Link to comment Share on other sites More sharing options...
Pixelfill Posted January 10, 2009 Share Posted January 10, 2009 I think it's outstanding ignorance from so called financial experts. I remember seeing a hedge fund manager on the news gloating that they'd - looked through the details and couldn't see how it could generate the returns. so had walked away. Mike Link to comment Share on other sites More sharing options...
hiten55 Posted January 10, 2009 Share Posted January 10, 2009 its amazing if nothing else. the sheer balls involved in the whole operation! so what happens to all the money now? $50bn doesnt just mysteriously disappear overnight..... Link to comment Share on other sites More sharing options...
carl0s Posted January 10, 2009 Author Share Posted January 10, 2009 Yeah. Mr Markpolos says in his SEC letter that many senior fund managers he spoke to said it was a scam. Link to comment Share on other sites More sharing options...
carl0s Posted January 10, 2009 Author Share Posted January 10, 2009 its amazing if nothing else. the sheer balls involved in the whole operation! so what happens to all the money now? $50bn doesnt just mysteriously disappear overnight..... It's mostly gone in fees and what not. Those hedge funds who were investing their client's money into Madoff's scheme were being paid commision on the 'profits' made. As much as $500m per year for some of them. With the financial crisis of last year and now, a lot of investors were wanting to draw their money back out of the fund, and there wasn't enough money to give it back .. Oh and it's $50bn that's been invested since day 1, 14 years ago. Every year for 14 years money has been going out of the fund to pay non-existing profit to previous investors. Some of that profit might/would have been left in the fund, which makes you wonder if the $50bn is what was invested, or what in total investors thought they had accumulated, but also there's been many millions paid out in commission to feeder funds or whatever you call them, and of course for the lavish lifestyle of Mr Madoff and his family and co-workers, many of which are family anyway. Link to comment Share on other sites More sharing options...
AndrewOW Posted January 10, 2009 Share Posted January 10, 2009 $50bn basically wiped out. Nuts. I wonder if Mr Madoff (perfect name BTW) had a friendly letter from his bank informing him of being 'slightly' overdrawn, and costing him a small charge for doing so? Link to comment Share on other sites More sharing options...
hiten55 Posted January 10, 2009 Share Posted January 10, 2009 I wonder if Mr Madoff (perfect name BTW) had a friendly letter from his bank informing him of being 'slightly' overdrawn, and costing him a small charge for doing so? doubt it - they probably asked him for a loan at some point Link to comment Share on other sites More sharing options...
JustGav Posted March 12, 2009 Share Posted March 12, 2009 In the news again, he has admitted the $50bn.... http://news.bbc.co.uk/1/hi/business/7939847.stm The 70-year-old defrauded thousands of investors in a fraud he admitted had been running since the early 1990s. He could receive up to 150 years when he is sentenced in June. I'm still gobsmacked how this much money can move round a system and not raise enough eyebrows. Link to comment Share on other sites More sharing options...
JustGav Posted March 12, 2009 Share Posted March 12, 2009 I wonder if Mr Madoff (perfect name BTW) had a friendly letter from his bank informing him of being 'slightly' overdrawn, and costing him a small charge for doing so? "You are overdrawn, please pay $50 000 000 035" Link to comment Share on other sites More sharing options...
Lbm Posted March 13, 2009 Share Posted March 13, 2009 Oh. Link to comment Share on other sites More sharing options...
carl0s Posted March 13, 2009 Author Share Posted March 13, 2009 In the news again, he has admitted the $50bn.... http://news.bbc.co.uk/1/hi/business/7939847.stm I'm still gobsmacked how this much money can move round a system and not raise enough eyebrows. It's just nuts isn't it. Link to comment Share on other sites More sharing options...
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