While the case against former Nasdaq chairman Bernard L. Madoff is still being put together, estimates are his huge fraud could cost investors a minimum of $50 billion. So far Madoff is facing one count of securities fraud, which he has confessed to.
Government officials say that his firm, Bernard L. Madoff Investment Securities LLC, was nothing more than a "ponzi scheme," citing Madoff himself as well as his employees who said Madoff told them "... It's all just one big lie" and "basically, a giant Ponzi scheme."
Employees said they took that to mean "he had for years been paying returns to certain investors out of the principal received from other, different, investors."
If the complaint and numbers are accurate, it would probably be the largest fraud perpetrated by an individual in history.
According to the SEC, they're pursuing appointment of a receiver for the company, and are also seeking an asset freeze to provide emergency relief for investors.
Calling Madoff ""a person of integrity," defense attorney Dan Horwitz says he plans on fighting the charges.
If Madoff is convicted of the charge, he could receive up to 20 years in jail, along with a $5 million fine.
Madoff was released Thursday evening on $10 million bail.
Related Stories:
Mad Madoff
Sons Turned In Madoff
Sterling Equities, Madoff Client, ‘Shocked’ by Fraud
Madoff fraud scandal chills Florida wealthy
Wall Street rocked by charges of massive fraud
UK asset manager Bramdean says exposed to Madoff
No comments:
Post a Comment