Madoffs investment fund may never have traded
January 17th, 2009 - 6:13 pm ICT by ANILondon, January 17 (ANI): Investment fund managed by Bernard Madoff, the prime accused of a 50 billion dollar investment fraud, may never have carried trade transactions.
The Wall Street fund manager, the perpetrator of the biggest financial fraud in history, had been arrested and charged with securities fraud on December 11.
The 70-year-olds swindle was alleged to involve up to 50 billion dollars in cash and securities through Ponzi schemes, which involves paying abnormally high returns to investors out of the money paid in by subsequent investors, rather than from the profit from any real business.
The allegation that not even a single share passed through his market-making business emerged after records of his broker-dealer, Bernard L. Madoff Investment Securities, were put under scrutiny.
Herb Perone, a rep for the Financial Industry Regulatory Authority said that the investigation “showed no evidence of trading on behalf of the investment adviser, no evidence of any customer statements being generated by the broker-dealer.”
It was claimed that Madoff had either been using an unlikely third-party firm to process the trades for the fund or that he was not executing any trades at all, reports the Telegraph.
The Wall Street Journal had reported that many wealthy investors from all over the world had fallen victim to the fraud including wealthiest woman in the world and heiress to the LOreal empire Liliane Bettencourt, Alicia Koplowitz, the Spanish billionaire and director Steven Spielberg. (ANI)
- Bernard Madoff's son, Mark, found dead on second anniversary of father's arrest - Dec 11, 2010
- Two former employees of Bernard Madoff arrested - Nov 19, 2010
- Prosecutors want Madoff jailed for ''mailing $1m worth jewellery to family'' from house arrest - Jan 06, 2009
- Worlds wealthiest woman also victim to Madoffs investment fraud - Dec 25, 2008
- Kevin Bacon, Kyra Sedgwick also Madoff investment fraud victims - Dec 31, 2008
- Larry King too fell ''victim'' to $50bn Madoff investment scam - Jan 24, 2009
- Trustee charges HSBC with funnelling disgraced Ponzi King Madoff's massive fraud - Dec 06, 2010
- Bernie Madoff was a bad tipper, says posh resorts staff - Feb 17, 2009
- Bernard Madoff's computer programmers arrested - Nov 17, 2009
- Ponzie King Madoff's possessions auctioned in New York - Nov 14, 2010
- Ponzi King Madoff's son found dead in New York apartment - Dec 12, 2010
- Bernard Madoff's Son Mark Madoff Found Dead In His Apartment - Dec 12, 2010
- Ponzi king Madoff paid nine billion dollars to pals before his arrest - Jun 22, 2010
- Bernie Madoff's Boxers Anyone? - Nov 12, 2010
- Widow gives $7.2bn back to Madoff victims in largest forfeiture in US history - Dec 18, 2010
Tags: bernard madoff, broker dealer, customer statements, director steven spielberg, dollar investment, financial fraud, financial industry regulatory authority, herb perone, investment adviser, investment fraud, investment fund, investment securities, liliane bettencourt, ponzi schemes, securities fraud, steven spielberg, trade transactions, wall street journal, wealthiest woman in the world, wealthy investors