Bernard Lawrence Madoff April 29, 1938 (age 80) is a legend on Wall Street in the United States and served as chairman of the board of directors of the NASDAQ stock market. For many years, he has been one of the hottest “investment experts” on Wall Street. He used the high return on funds as a bait, attracted a large number of investors to continuously inject capital, and repaid the previous investment interest with the newly acquired income, forming a capital flow. This scam has been maintained for many years. Until the subprime mortgage crisis broke out in 2008, he faced up to $7 billion in redemption pressure and could not continue to support it. Only then he tell his son, that his company’s executives, confess that he had “nothing” and everything was “just A huge lie." Madoff’s sons reported Dad that night, and one of the biggest fraud cases in US history was exposed to the world’s eyes.
The subprime mortgage crisis wiped out Wall Street, and the glare of Fortune and Wisdom Garden was weak. The $50 billion Madoff scam gave Wall Street a slap in the face. In the "Made-style scam", many well-known institutions were hit, including Spanish financial giant Santander, the risk exposure in this fraud case was as high as about 3.1 billion US dollars, with BNP Paribas and European banking giant HSBC Bank, Japan Nomura Securities, etc. But what kind of super magic does Madoff have?
In fact, the "Madoff -style scam" model is a plagiarism of the typical "Ponzi scheme", which is not new, that is, using high returns to lure investors, while using the later investor funds to pay up the previous investors. The "Ponzi scheme" model can only last for two or three years, and Madoff has used a simple fraudulent director for 20 years, amounting to 50 billion US dollars, fooling many investors on Wall Street, deceiving a large number of professional The victims of experience have to be “stunned”, and how smart and wise Wall Street “disregards”!
Analysis and judgment, it is not difficult to see that the "Madoff -style scam" is wrapped in a glamorous outer shell, and some of the so-called investment experts on Wall Street are also superstitious about these bright shells.
First, Madoff wraps himself with goodness and behavior and a “white-and-white” investment shell. Trust him and you will get a steady return of 1%-2% per month. Madoff himself pursues flawless career records, is committed to fair trade, and maintains high moral standards, which are well-known Madoff logos on Wall Street.
Madoff created an excellent personal glamour for his scam. Before the scam was exposed, Madoff had a good reputation and liked to donate. In the Jewish community of Florida and New York, Madoff is considered by many to be a "God" in investment, saying that his fund is "Jewish T-NOTES", meaning that it is as solid as the short-term government bonds issued by the Ministry of Finance.
Second, he wrapped himself with the mystery of mysterious investment techniques. The harsh condition of Madoff’s investment attraction is that if you want to invest in Madoff, please don’t ask him any questions about investment. As for why he can make money when others don't make money, Madoff uses a few words to explain: "internal news." Many savvy hedge fund managers and professional investors have been easily conquered by the words "internal news."
In the shiny shell, a lot of clues leaked, proud of turning a blind eye to Wall Street.
From an operational point of view, accounting firms that use unfair accounting firms for daily audits and are responsible for more than $1 billion in asset audits of Madoff Investment Securities have only three employees: partners, secretaries, and an accountant.
He violated the control principle of isolation. All transactions of Madoff Investment Securities are dictatorial by Madoff. He manages assets and reports assets at the same time. The company's asset management and custody are not separated.
Madoff has been secretive about the company's financial situation, and all the accounts and documents of the investment advisory business have been "locked in the safe" by Madoff.
Madoff declared that he had adopted an investment strategy called “split conversion”, and almost no one could explain what exactly.
The "Madoff -style scam" is against the fragility of Wall Street regulation. The packaging of the Madoff scam is complicated, but the investment operation is simple and clear, and the vulnerability is easily seen. However, this 20-year, up to $50 billion investment scam was exposed after Madoff’s son fulfilled the duties of the regulator. This is a great irony for Wall Street regulators.
On the evening of January 7, Beijing time, JP Morgan Chase agreed to pay $1.7 billion on Tuesday in order to settle the government allegations related to financial giant Bernard Madoff.According to a criminal lawsuit filed by the US government, the relationship between JPMorgan Chase and Bernard L. Madoff Investment Securities exposes the former to the US Bank Secrecy Act two felony charges.
After the settlement with the US government, the two felony charges facing JPMorgan Chase will be postponed for two years, and the bank must reform its anti-money laundering policy during this period.
On December 8, 2014, US local time, Daniel Bonventre, Madoff's former back-office operations director, was sentenced to 10 years in prison by the federal court in Manhattan and was fined more than $155 billion.
Bernie Madoff exits federal court March 10, 2009 in New York City. Photo Credit: Getty Images / Mario Tama
Publish By: Yong Sai Ling
Reference Link :-
Carozza, Dick. 2009. “Chasing Madoff.” Fraud Magazine. May/June 2009
http://www.fraud-magazine.com/article.aspx?id=313
Bernard Madoff Fast Facts by CNN Library in April 13, 2018
https://edition.cnn.com/2013/03/11/us/bernard-madoff-fast-facts/index.html
Bernie Madoff (AMERICAN HEDGE-FUND INVESTOR)
WRITTEN BY: The Editors of Encyclopaedia Britannica
LAST UPDATED: Jul 27, 2018
https://www.britannica.com/biography/Bernie-Madoff
No comments:
Post a Comment