Bernard L. Madoff Investment Securities LLC Ponzi scheme

E172262

The Bernard L. Madoff Investment Securities LLC Ponzi scheme was a massive, decades-long fraudulent investment operation orchestrated by Bernie Madoff that became one of the largest and most notorious financial scams in history.

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Statements (64)

Predicate Object
instanceOf Ponzi scheme
financial scandal
securities fraud case
actualTrading little or no real trading in client accounts
beganApproximate early 1990s or earlier
carriedOutThrough Bernard L. Madoff Investment Securities LLC Ponzi scheme self-linksurface differs
surface form: Bernard L. Madoff Investment Securities LLC
charges false statements
investment adviser fraud
mail fraud
making false filings with the SEC
money laundering
perjury
securities fraud
theft from an employee benefit plan
wire fraud
claimedStrategy split-strike conversion
consequence increased scrutiny of investment advisers
major reforms in SEC enforcement and oversight
country United States of America
surface form: United States
culturalImpact subject of numerous books, documentaries, and films
discoveredIn December 2008
durationApproximate several decades
estimatedActualLosses about 17–20 billion US dollars (principal)
exposedBy Bernie Madoff
surface form: Bernard L. Madoff

Federal Bureau of Investigation
Madoff’s sons
guiltyPlea Bernard L. Madoff pleaded guilty on March 12, 2009
headquartersDuringScheme New York City
investmentTypeClaimed equity and options trading
legalProceeding United States v. Bernard L. Madoff
mainRegulator Financial Industry Regulatory Authority
Securities and Exchange Commission
surface form: U.S. Securities and Exchange Commission
mediaCoverage extensive global media attention after 2008 collapse
method fabrication of account statements
false reporting of trades
using new investor funds to pay existing investors
notableVictim Banco Santander
surface form: Banco Santander (via Optimal Investment Services)

Elie Wiesel Foundation for Humanity
Fairfield Greenwich Group
Hadassah, The Women’s Zionist Organization of America
surface form: Hadassah, the Women’s Zionist Organization of America

UBS-linked feeder funds
notableWhistleblower Harry Markopolos
officeLocation Lipstick Building, 885 Third Avenue, Manhattan
perpetratedBy Bernie Madoff
surface form: Bernard L. Madoff
recoveredAmountApproximate over 14 billion US dollars for victims (by mid-2010s)
recoveryEfforts clawback lawsuits against net winners and feeder funds
relatedConviction Bernard L. Madoff sentenced to 150 years in prison
scaleDescription one of the largest Ponzi schemes in history
SECFailure multiple missed opportunities to uncover fraud
sentencingDate June 29, 2009
totalCustomerClaimsFiled about 65 billion US dollars (purported account values)
trustee Irving H. Picard
trusteeAppointedBy United States Bankruptcy Court for the Southern District of New York
surface form: U.S. Bankruptcy Court for the Southern District of New York
typicalPromisedReturns steady, above-market returns with low volatility
usedFeederFunds Ascot Partners
Fairfield Sentry
Kingate Global Fund
Tremont Group feeder funds
victimType banks and financial institutions
charitable foundations
hedge funds
individual investors
pension funds
whistleblowerWarnings repeated submissions to SEC from 2000 onward

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Jeffry M. Picower involvedIn Bernard L. Madoff Investment Securities LLC Ponzi scheme
Lipstick Building hasTenant Bernard L. Madoff Investment Securities LLC Ponzi scheme
this entity surface form: Bernard L. Madoff Investment Securities
Lipstick Building associatedWith Bernard L. Madoff Investment Securities LLC Ponzi scheme
this entity surface form: Bernard Madoff Ponzi scheme
Picower Foundation dissolvedAsResultOf Bernard L. Madoff Investment Securities LLC Ponzi scheme
this entity surface form: Madoff investment scandal
Picower Foundation investedWith Bernard L. Madoff Investment Securities LLC Ponzi scheme
this entity surface form: Bernard L. Madoff Investment Securities LLC
Bernard L. Madoff Investment Securities LLC Ponzi scheme carriedOutThrough Bernard L. Madoff Investment Securities LLC Ponzi scheme self-linksurface differs
this entity surface form: Bernard L. Madoff Investment Securities LLC
Madoff trustee Irving Picard associatedLegalEntity Bernard L. Madoff Investment Securities LLC Ponzi scheme
subject surface form: Irving Picard
this entity surface form: Bernard L. Madoff Investment Securities LLC
Jeffry Picower participantIn Bernard L. Madoff Investment Securities LLC Ponzi scheme
this entity surface form: Madoff investment scandal
Jeffry Picower beneficiaryOf Bernard L. Madoff Investment Securities LLC Ponzi scheme
this entity surface form: Madoff Ponzi scheme
Talking to Strangers includesCaseStudy Bernard L. Madoff Investment Securities LLC Ponzi scheme
this entity surface form: Bernie Madoff Ponzi scheme