The largest international "Ponzi scheme": Bernard Madoff scam(Hits: )

World Record Title: The largest international "Ponzi scheme": Bernard Madoff scam
World Record Creator: Bernard Madoff scam
World Record Holder: Bernard Madoff scam
World Record Field: The largest international "Ponzi scheme"
World Record rules: The largest international "Ponzi scheme"
World Record Number: 20120200038
World Record Validity Period: Until the world record was broken.
World Record Witness: Carrying the Flag World Records certifier 001
World Records Source: World record database of Carrying the Flag
Awarding Certificate Date: February 11, 2012
World Record Details:

     The largest international "Ponzi scheme": Bernard Madoff scam. Bernard Madoff (Bernard L. Madoff, also translated: Bernard Madoff, Bernard Madoff, April 29, 1938 -), American financial brokerage, the former Nasdaq Mr President, the largest in U.S. history fraud maker. Before the incident NASDAQ OMX Group, a member of the Nomination Committee. Madoff in 1960, after graduating from law school, he took himself to do on the beach lifeguard earned $ 5000 founded the Bernard Madoff Investment Securities, and therefore well-known Wall Street. The company mainly served as stock trading middleman and famous. In 2001, the company was called Madoff NASDAQ Stock Market listed three offers consulting brokerage firms, the NYSE's third-largest brokerage firm. Because the design of a Ponzi scheme (ponzi scam), many well-known financial institutions, investors lost $ 50 billion (approximately HK $ 390 billion) or more, had escaped the U.S. Securities and Exchange Commission and other bodies. British Financial Times quoted interested parties, said HSBC Holdings So times Madoff fraud potential risks may be responsible for $ 1.5 billion. Madoff also leads an investment advisory business, this business is designed for the wealthy, hedge funds and other institutional investors, financial fame in 2000 after Madoff's life trajectory has undergone tremendous changes. He crafted a giant "Ponzi scheme" in order to secure a high return on investment to make themselves once again become a Wall Street legend, until early December 2008 revealed the secret
Pull customers into the elite club
Palm Beach Country Club was founded in the 1950s, this is a high-end Jewish club, only 300 members. To apply to join, not only rich enough (dues $ 300,000), but also must be persons of high moral character, the annual charitable donations recorded at least $ 300,000. Madoff easily to break into the elite gathered in the Country Club, and attracted many wealthy Jewish members. It will try to figure out Madoff investors' psychology, he deliberately creating a xenophobic atmosphere, and the "non please Mo into" policy, and only after inviting investors to become corporate clients. This means that to become a bit like Madoff's clients to join a high threshold of the club, with money no one presentation is not advanced. This strategy was very successful. In many people's opinion, put money into Madoff has become a status symbol. Madoff never explain investment strategy, and if you ask too much, he would refuse to accept your investment. In the club's golf course and a cocktail party, people often referred to Madoff's name. Some Jewish elderly, said Madoff was "the Jewish bond" that can give 8-12% return on investment, and so every year, no matter how the situation in the financial markets. Madoff boasted: "I rise in the market to make money, make money in a falling market, the lack of volatility in the market will only let me do anything 

 
 
 
50-year old friend still lie friendship
95-year-old member of the club, apparel Hengka Er Shapiro is one of the biggest victims of this scam, he knew Madoff nearly 50 years, Madoff was invited to attend his 95th birthday party, traveling with him even with his great-grandson play. Shapiro's public funds to Madoff's fund invested $ 145 million. In addition, Shapiro and his family will be another $ 400 million to Madoff management. With the growing number of customers, Madoff minimum investment requirements have gone up from the initial $ 1 million rose to $ 5 million, then to $ 10 million. At least 1/3 of the club members invested in Madoff's funds. Since stable returns Madoff's reputation is growing, members have to have pride in Madoff investment accounts
 
Scam was exposed
Early December 2008, Madoff revealed to his son, the customer called for redemption $ 7 billion investment, so that he appeared liquidity problems. December 9, Madoff suddenly expressed early bonus for 2009. December 10, said Madoff confessed to his son, in fact, "nothing", but concocted a giant pyramid pyramid "Ponzi scheme" to defraud customers before and after a total of $ 50 billion. On the 10th night, Madoff denounced by his son, detonating the biggest ever fraud. December 11, Madoff was arrested. Prior to the incident, people trust Madoff Madoff did not let them down; them over Madoff funds, can get a fixed return of 1% per month, which is very incredible rate of return. But in fact, Madoff did not create wealth, but to create a people of his own wealth impression. Customers who do not know, handsome returns from their own and other customers of principal - as long as no one asked to take back the principal, the secret will not be debunked. But when a customer asked to redeem $ 7 billion in cash, the game is over. As of November 30, 2008, Madoff's company accounts, there were 4,800 investor accounts, these deceived investors, including hedge funds, Jewish charitable organizations and investors around the world. Ponzi scheme, a form of fraud, it is believed a nonexistent enterprise was a commercial success, but is in fact a short time, with other investors money to return the first investors in the 1990s, wheat Astoria borrow themselves as successful stock market broker's identity established an asset management company. Madoff through their own social networks for this fund for financing his Palm Beach Country Club through charities or other occasion, make friends, and take advantage of some had fallen into his trap investors do introducer to introduce more more customers to him, those Referrals can collect commission, naturally happy to do middleman, so there is a snowball effect. There are reports that it is in this club Madoff found a later attracted him to join the other members of the investors. In the face of it, Madoff's fund is a low risk investment behavior. His huge profits fund has a stable return rate  .
Month growth may reach one to two percent growth rate. The reason behind the growth of the fund constantly doing the buying market growth funds and fixed stock options, etc. business. This comprehensive portfolio has been considered stable investment income can be generated. 2005, when, according to the SEC statement, Madoff's investment fund business is becoming a new "Ponzi scheme," and all the proceeds are returned to investors from the growing number of new entrants investors. According to the SEC earlier data show until January 2008 until Madoff's fund manages $ 17.1 billion in total capital. Although this year's situation is constantly deteriorating, but still Madoff said in a report to investors - his fund were still solid growth, this growth figure is still up until last November by 5.6% per month, with the S & P average growth down 37.7% compared to, this is definitely an impressive performance。   Although he still report their growth record, but began to have more and more investors began to demand Madoff return investments. According to the SEC's argument, only in December the first week, Madoff accepted up to $ 7 billion in redemption requests. On Wednesday, Madoff on his two sons, all this is "a huge Ponzi scheme" - and now, bankruptcy situation has become increasingly closer. Sons followed with lawyers approached the situation, and ultimately to the Federal reported scam. And just before he was arrested, Madoff is still in the company employees and their own relatives were doling out the remaining $ 30 billion of funds. If not because of this global financial crisis, then perhaps this scam can also continue to. But the crisis makes everything profiling, Madoff admitted his behavior. As Buffett puts it - until low tide, you know who is swimming naked。   This event took off so many sophisticated investors and bankers trunks. Hundreds of banks, hedge funds and wealthy individuals are assured of their own hands the money to the Madoff funds, because he is such a tempting promise figures - even the difficult times, there are still 10 year % to 15% growth rate. Bank of victims from around the world, BancoSantander, BNPParibas and HSBC which three so far survived the financial crisis, banks are still this time also deeply in the forward. Even worse is that a lot of Americans, they are in this crisis, in addition to Madoff's fund, has nothing. June 29, 2009 by the New York Southern District Court sentenced to 150 years in federal prison, aged 71, Madoff will spend the rest of his life in prison
Punished by the law
March 2009, Madoff expressed, including securities fraud, money laundering and other criminal charges, including 11 pleaded guilty to fraud amounts add up to reach $ 65 billion. June 29, 2009, the New York federal court sentenced Madoff 150 years in prison, which means Madoff will spend the rest of his life in prison; court ruling also confiscated about $ 170 billion Madoff property of Madoff's wife will also be on pay more than 80 million dollars in assets under the name of, but was allowed to retain $ 2.5 million of property

   Cause debunked
1 Use the luxurious places to establish a network of networks Madoff aged 70 years of operating capital management. Over the years, Maxwell through Bernard Madoff Investment Securities secret capital management company under the branches, using a wide range of contacts, investment fraud. Madoff in Dallas, Chicago, Boston and Minneapolis and other cities woven network of relationships, using a variety of luxury workplace exposure investors. (2) establish the "investment will earn" Jimmy's reputation only in the city of Hopkins, Minnesota Hilltop Golf Club and Oak Ridge Club "financing" more than 100 million U.S. dollars. "When you play in a golf club or dinner, everyone talking about how Madoff to help them make money, everyone wants Jiaru Mai Astoria project." 3. Development "pyramid offline" Madoff use friends, family and business partners in development "offline", and some people were successful "foreign capital" and get a commission. Some "offline" and the development of new "offline." 4. Reasonable rate of return on a monthly basis to fool everyone Madoff Investment Report submitted by customers he was very aggressive, customers can also redeem the investment at any time in a few days. And with the general deception unreasonably high returns compared to Madoff customers that return annually to only about 12% -13%, so there will be so many unsuspecting customers do not fear fraud
 
 
 
2005, when, according to the SEC statement, Madoff's investment fund business is becoming a new "Ponzi scheme," all of the proceeds are returned to investors from the growing number of new entrants investors. According to the SEC earlier data show until January 2008 until Madoff's fund manages $ 17.1 billion in total capital. Although this year's situation is constantly deteriorating, but still Madoff said in a report to investors - his fund were still solid growth, this growth figure is still up until last November by 5.6% per month, with the S & P average growth down 37.7% compared to, this is definitely an impressive performance. Although he still report their growth record, but began to have more and more investors began to demand return of Madoff investments. According to the SEC's argument, only in December the first week, Madoff accepted up to $ 7 billion in redemption requests. Madoff said their two sons, all this is "a huge Ponzi scheme" - and now, bankruptcy situation has become increasingly closer. Sons followed with lawyers approached the situation, and ultimately to the Federal reported scam. And just before he was arrested, Madoff is still home to the Company's employees and relatives were doling out the remaining $ 30 billion of funds 
 Victims and the amount of loss
According to the Wall Street Journal's statistics [5], list only the amount of loss more than 100 million U.S. dollars of the victims: Fairfield Greenwich Group's $ 7.5 billion MassMutual Financial Group Tremont hedge fund company $ 3.3 billion Banco Santander (Santander) 28.7 one hundred million U.S. dollars Austrian bank (Bank Medici AG) 21 million U.S. dollars NY at $ Ascot Partners 18 亿 investment company "Access International Advisors" 14 million U.S. dollars FORTIS (Fortis Group) 13.5 million U.S. dollarsSwiss bank $ 1 billion HSBC 10 million U.S. dollars Switzerland BENBASSAT & CIE private banks $ 935 million Primeo SelectFund 8.35 million U.S. dollars French Foreign Trade Bank (Natixis) 4.5 billion euros ($ 605 million) Royal Bank of Scotland, $ 600 million New York Mets owner Will Peng (Fred Wilpon) General Motors financial Services (GMAC) Chairman Mo (Ezra Merkin) Braman, former owner of the Philadelphia Eagles (Norman Braman) BNP Paribas 300,000,000 50,000,000 euros Man Group 3.6 million U.S. dollars Nomura Holdings Kingate Global Fund The Global Fund Yeshiva University Maxam capital Management
   Madoff - the biggest winner and benefit amounts
PICOWER (Jeffry Picower) 51 million U.S. dollars

 



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