Famous Victims of Bernard Madoff
Billkozy on 04/03/2009
|He faces 150 years in prison for bilking a total of 4,800 investors of $65 billion. He did it with a Ponzi scheme, so named for Charles Ponzi, a man who scammed thousands of New England citizens during the 1920s. In a typical Ponzi illegal pyramid scheme, investors are paid not from profits but from their own money and additional monies paid into the "club" by new investors lured in by the promise of large returns of their investment.|
Starting in the early 1990s, Madoff promised investors big returns based on purchases of common stocks, options, and securities. What he really did though was open an account at Chase Manhattan, and deposited the investors' money. When a client would request his/her principal or interest, Madoff would simply withdraw that amount from the bank. He charged clients 4 cents per trade on their "stocks" creating false trade reports and monthly statements. To hide his deeds, he filed false audit reports with the SEC. He transferred money to a London company that he set up, in order to make it look like he was also trading in European stocks.
Who were some of the more famous of the 4,800 victims? Here are some of them, featured in this quiz.
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