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Old 10-11-2009, 10:43 PM
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rickoff rickoff is offline
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Location: Maine, USA
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More on Madoff and the SEC

In my previous post, concerning the Madoff/SEC scandal, I pointed out how Madoff is said to have conducted the largest financial fraud scheme in history that is attributed to a single individual. But did he really pull this off all on his own? Not a chance. The SEC clearly enabled this 50 billion dollar ponzi scheme to go on unabated, even though they were furnished with clear evidence of wrondoing by Markopolis on five occasions over a 9 year period. Some very revealing information about that in this 60 Minutes interview with Markopolis:
YouTube - 60 Minutes Harry Markopolos Madoff Part1of2
and YouTube - 60 Minutes Harry Markopolos Madoff Part2of2

As seen in these videos, several large investment firms were "feeders" for Madoff's ponzi scheme, including the Connecticut firm Fairfield Greenwich, which steered more than 7 billion of investor money into Madoff's scheme. The ponzi scheme ended up wiping out the life savings of a great many inividuals, both wealthy and working class. Many pension funds and charitable organizations were fully invested in the Madoff ripoff, mostly because of faulty advice given by investment advisors at firms such as Fairfield Greenwich. These firms later claimed that they had no way of knowing that Madoff's "investment plan" was fraudulent, and that they were also victims. That is far from true. They had the ability, and the obligation, to thoroughly check out the validity of Madoff's investment claims before falsely advising investors. Madoff regularly published lists of so called successful stock and commodity trades that he had made, and these were shown to prospective investors at the feeder firms. These were totally bogus, as none of the listed trades ever took place - a fact that could easily have been discovered if the feeder firms had done due investigative diligence and simply made a few phone calls in an attempt to verify whether or not the reported trades were factual.

From what I have been able to determine, it looks as though the SEC never investigated the involvement of the feeder firms, and none of the firms owners or employees have been indicted. As a matter of fact, the SEC never did conduct an investigation resulting in bringing Madoff down. In the end, when Madoff realized that his ponzi scheme was about to collapse, he had his sons (who had conducted much of Bernie Madoff's business affairs) turn him in to authorities. This, of course, was to protect them from being charged in any way. Madoff has steadfastly maintained that he was the only person who had any knowledge concerning the fraud, but of course that is ridiculous, as the following 20/20 program investigative report shows:
YouTube - Bernard Madoff on 20/20 Part 1
and YouTube - Bernard Madoff on 20/20 Part 2
and YouTube - Bernard Madoff on 20/20 Part 3
Very revealing, don't you think?

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