How could one man swindle up to $50 billion in a mater of a few years? How could one man do this to his own family and friends? How did former Nasdaq chairman, Bernard Madoff, deceive an entire nation in a time of an economic recession?
Madoff, who has been charged with fraud, was known on Wall Street for his sense of humor and bubbly personality. What began as business venture to create an asset-management firm headed by sons, Andrew and Mark soon became one of the largest pyramid schemes known to man.
Madoff, gathered investors for his scheme by visiting country clubs and Jewish organization his parents and friends belonged too. What many considered to be a low risk investment left many bankrupt and hopeless.
The strategy of the fund was to purchase large cap stocks and increase those investments with related stock-option strategies. The combined investments could allegedly create a stable return.Although that was the original plan in 2005 things took a drastic turn for the worst when Madoff realized his business was failing. Instead of declaring bankruptcy, Madoff began using the money from new investors to pay off old clients.
The cycle continued as new investors believed their money was going into a fund but in reality was going to directly to the pockets of old clients. Although Madoff’s business was rapidly failing he continued to report steady growth. In a time of a failing economy many investors began wanting their money back, Madoff had no money to give.
His sons were informed by Madoff that the business had been a fraud. Sons Andrew and Mark had no choice but to inform authorities. Madoff’s case is still in progress, if found guilt could face life in prison. Madoff has also agreed to give up the rights to his investment business, his company’s prized artwork and entertainment tickets.On Thursday a guilty plea to all 11 counts he was charged with, including fraud, perjury, theft from an employee benefit plan, and two counts of international money laundering.
At Oracle Law Group, we know that being a victim of fraud can leave you financially destitute and feeling betrayed. You may feel hopeless, wondering what can be done to recover your losses. At Oracle Law Group we are committed to helping innocent people victimized by fraud. By taking your case to court, we may be able to help you recover your losses. If you have been left bankrupt because of a person or company’s fraudulent practice call for a free case evaluation today!