The latest news from San Francisco inform that Bernard Madoff, known as ex-Nasdaq Stock Market chairman who founded the Bernard L. Madoff Investment Securities LLC, was recently put under arrest. According to FBI statements, the charges that were brought against him this Thursday concern the securities fraud accusation, particularly it deals with the so-called Ponzi scheme. As federal prosecutors declare, the Madoff’s case is connected with the losses of 50 billion dollars.
Recently the Securities and Exchange Commission has lodged a complaint in federal court of Manhattan, NY, attempting to block the funds and to set up the appointment of a receiver for the company leaded by 70-year-old Bernard Madoff.
We want to remind to you that former Nasdaq chairman was charged with one count of securities fraud, according to a statement from the Acting U.S. Attorney for the Southern District of New York and the Federal Bureau of Investigation.
"We are alleging a massive fraud, both in terms of scope and duration," said SEC Enforcement Bureau director Linda Thomsen in a statement. "We are moving quickly and decisively to stop the fraud and protect remaining assets for investors, and we are working closely with the criminal authorities to hold Mr. Madoff accountable."
Madoff did not enter a plea or make any comment during a court hearing Thursday evening, according to The Wall Street Journal. He was expected to be released after agreeing to post a $10 million bond secured by his Manhattan apartment.
A preliminary hearing was scheduled for Jan. 12.
"Bernard Madoff is a longstanding leader in the financial services industry with an unblemished record," Dan Horwitz, a lawyer for Madoff, told the Journal. "He is a person of integrity. He intends to fight to get through this unfortunate event."
Madoff's firm is known as securities broker dealer, but he also runs a separate investment advisory business which had more than $17 billion in assets under management, federal authorities said, citing two unidentified employees and a Securities and Exchange Commission filing.
Madoff counted several large hedge fund investment firms as clients, along with some European banks, so if his firm has lost more than $50 billion, the impact could be widespread.
On Wednesday, Madoff told two senior employees that he was "finished," that he had "absolutely nothing," that "it's all just one big lie," and that it was "basically, a giant Ponzi scheme," federal prosecutors said in their statement.
According to a criminal complaint filed on Thursday and cited by the Journal, Madoff "deceived investors by operating a securities business in which he traded and lost investor money, and then paid certain investors purported returns on investment with the principal received from other, different investors, which resulted in losses of approximately billions of dollars."
Madoff also said his business was insolvent, and that it had been for years, estimating losses to be at least $50 billion, prosecutors alleged, again citing the two unidentified employees.
According to the complaint, Madoff told one of his senior employees that clients were seeking about $7 billion in redemptions and that "he was struggling to obtain the liquidity necessary to meet those obligations." The employees believed the firm had about $17 billion under management.
Earlier this week, Madoff also allegedly told an employee that he wanted to pay bonuses to employees this month-- earlier than usual. Later, two employees who met with Madoff at his apartment were told that the business was a giant Ponzi scheme, which they took to mean that Madoff "for years been paying returns to investors out of principal received from other, different investors." Madoff allegedly told those employees that the firm was insolvent, according to the complaint.
Microsoft founder and the famous billionaire Bill Gates appealed with the propose to the new government leaded by the recently elected President to increase deficit costs for stimulation the economy in such rough times and assist the most defenseless representatives of the USA. A well-known philanthropist insisted on a point of view – fresh investments are crucial to constructing on new facilities and modernization of public education in the USA. He also insisted that problems of diseases abroad must be solved immediately, but without extra costs it wouldn’t be possible ...
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European stocks climbed Monday, lifted by the U.S. federal government's plan to rescue beleaguered financial giant Citigroup.
Nov. 24 (Bloomberg) -- Citigroup Inc., facing the threat of a breakup
or sale, received $306 billion of U.S. government guarantees for
troubled mortgages and toxic assets to stabilize the bank after its
stock fell 60 percent last week. Citigroup also will get a $20 billion
cash injection from the Treasury Department, adding to the $25 billion
the company received last month under the Troubled Asset Relief Program.
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eliminate 1,600 jobs in the San Francisco area, a company spokesman
said.
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She is 84 and has been worried a lot lately about outliving her savings. A retired nurse, Stark is a prime example of what financial planners coldly call "longevity risk"
Life Plaza Center in San Gabriel used to teem with diners heading to
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U.S. Attorney General Michael Mukasey collapsed while giving a speech at a Washington hotel. He was taken to the hospital where he later was reported to be awake and talking. "The attorney general is conscious, conversant and alert," said Peter Carr, a Justice Department spokesman.