The SEC's complaint, filed in federal court in Manhattan, alleges that Madoff yesterday informed two senior employees that his investment advisory business was a fraud. Madoff told these employees that he was qfinished, q that he had qabsolutely nothing, q that qit's all just one big lie, q and that it was qbasically, a giant Ponzi scheme.q The senior employees understood him to be saying that he had for years been paying returns to certain investors out of the principal received from other, different investors. Madoff admitted in this conversation that the firm was insolvent and had been for years, and that he estimated the losses from this fraud were at least $50 billion.According to regulatory filings, the Madoff firm had more than $17 billion in assets under management as of the beginning of 2008. It appears that virtually all assets of the advisory business are missing.Madoff and BMIS Conducted a Fraudulent Scheme, a Ponzi Scheme Through the investment adviser services of BMIS, Madoff has conducted a ponzi- scheme, whereby he has false represented to investors that returns were being earned on anbsp;...
|Title||:||Bernard L. Madoff Charged In Multi-Billion Dollar Ponzi Scheme|
|Publisher||:||www.BackgroundNow.com - 2008-12-13|