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Old 10-12-2009, 09:35 AM
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rickoff rickoff is offline
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Join Date: May 2008
Location: Maine, USA
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Quote:
Originally Posted by jibbguy View Post
Hehehe only in America

The Ponzi family is demanding that federal prosecutors stop using their name to describe Madoff's crimes

American Politics Journal - Ponzi Estate Sues Federal Prosecutors For Slander
Hi Steve,

The name, "Ponzi scheme," is of course a reference to Charles Ponzi, the man who supposedly was the first (at least on a large scale) to sucker investors into unknowingly making investments in a pyramid scheme. Ponzi was not the first to use such a scheme, however, and his 7 million dollar swindle looks like peanuts compared to Madoff's 50 billion dollar take. Therefore, I can see why the Ponzi family is irked. Ponzi came to the US from Italy with only $2.50 in his pocket, and later was arrested and served 3 years in prison for forging a check. You would think that potential investors would have been more wary because of Ponzi's past, but their greed was what motivated them. Ponzi ran ads stating that he would pay investors a 50% interest in just 45 days, and of course people should have realized that was just too good to be true. He actually did pay early investors, but with money that came in from future investors once the word spread that Ponzi had paid up as promised. Now of course anyone who thinks they are making money hand over fist isn't going to cash in right away, so most people just left their money to grow, thinking they would become wealthy in a year or two. And that's the same kind of euphoria that Madoff's investors believed in. The difference is that Madoff was well known on Wall Street as a supposedly respectable businessman, having served as NASDAQ chairman, and operating a legitimate investment firm for several years. He was clever enough to refine the Ponzi scheme into something that truly had the appearance of being a remarkable series of wisely chosen and high yielding investments. If not for the deepening recession, and people choosing to pull their money out of the stock markets, Madoff might have been able to continue his deception for several more years. Madoff was definitely one of the powerful elite, and a member of the American Ruling Class. Like others of the Ruling Class, he contributed large sums of money to candidates in both the Democrat and Republican parties. When the scandal broke, a few senators quickly released their takes to be distributed to victims of Madoff's swindle, but many more politicians did not. Very few of Madoff's investors will ever see a dime of their investments returned, but what about Madoff - does he get to keep his several lavish estates for his family? And what of his legitimate Wall Street business? Can that be dissolved and the proceeds used to pay back swindled investors, or is his business a separate entity that is protected from that use? I haven't heard or seen the answers to these questions yet, but it would certainly be interesting to learn the truth.

Incidentally, after reading the article you provided a link to, I am now wondering where the Ponzi descendants came up with millions of dollars to invest with Madoff. Could it be that they were able somehow to hold onto a large part of the 7 million dollar fortune that Charles swindled his investors out of? If so then the adage, "what goes around comes around" would certainly hold true in this case, and also be well deserved.

Rick
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Last edited by rickoff; 10-12-2009 at 09:49 AM. Reason: sp
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