Maddof affair

jpm1 · 01-05-09, 01:05 PM

Did you see that ? 50B $ and counting . People over the world ruined from renown fund managers to little investors even S. Spielberg was hit . Some even suicide

AVGWarhawk · 01-05-09, 01:18 PM

It was an old scheme that he got away with for 10 years. It is very simple really, tell investors of 15-20% returns. How to generate these returns, get more money from new investors. Worked great until the well dried up a few months back. Investors wanted to pull their money from the markets. Guess who did not have the money? Madoff. Guess who went to his employees and brothers letting the cat out of the bag? Madoff. He has ruined many a life. A real piece of work here. Not to mention SEC sat on their thumbs over a year knowing he was up no good.

TarJak · 01-05-09, 04:34 PM

Yep a realatively simple pyramid or ponzi scheme dressed up as a valid investment scheme. Works great for early investors who pull out before everyone else wants their money at the same time which is when the whole scheme collapses.

http://en.wikipedia.org/wiki/Ponzi_scheme

01-05-09, 01:05 PM	#1
jpm1 Captain Join Date: Jan 2007 Posts: 544 Downloads: 9 Uploads: 0	Maddof affair Did you see that ? 50B $ and counting . People over the world ruined from renown fund managers to little investors even S. Spielberg was hit . Some even suicide

01-05-09, 01:18 PM	#2
AVGWarhawk Lucky Jack Join Date: Jun 2005 Location: In a 1954 Buick. Posts: 28,253 Downloads: 90 Uploads: 0	It was an old scheme that he got away with for 10 years. It is very simple really, tell investors of 15-20% returns. How to generate these returns, get more money from new investors. Worked great until the well dried up a few months back. Investors wanted to pull their money from the markets. Guess who did not have the money? Madoff. Guess who went to his employees and brothers letting the cat out of the bag? Madoff. He has ruined many a life. A real piece of work here. Not to mention SEC sat on their thumbs over a year knowing he was up no good. __________________ “You're painfully alive in a drugged and dying culture.” ― Richard Yates, Revolutionary Road

01-05-09, 04:34 PM	#3
TarJak Fleet Admiral Join Date: Jul 2006 Location: Sydney, Australia Posts: 17,052 Downloads: 150 Uploads: 8	Yep a realatively simple pyramid or ponzi scheme dressed up as a valid investment scheme. Works great for early investors who pull out before everyone else wants their money at the same time which is when the whole scheme collapses. http://en.wikipedia.org/wiki/Ponzi_scheme