Possibly biggest ever fraud committed by Hedge fund manager?

scorza · 12 Dec 2008 at 19:29

http://news.bbc.co.uk/1/hi/business/7779442.stm

The former chairman of the Nasdaq stock market has been arrested and charged with securities fraud, in what may be one of the biggest fraud cases yet.

Bernard Madoff ran a hedge fund which ran up $50bn (£33.5bn) of fraudulent losses and which he called "one big lie", prosecutors allege.

Mr Madoff is alleged to have used money from new investors to pay off existing investors in the fund.

Basically he is accused of running his Hedge fund like a pyramid scheme. This is absolutely massive and is going to have massive implications for the current financial crisis.

Aloreth · 12 Dec 2008 at 19:35

yikes - I wonder what the repercussions of this will be?

philip2009 · 12 Dec 2008 at 19:41

If found guilty, US prosecutors say he could face up to 20 years in prison and a fine of up to $5m.

Assuming he's guilty, I think Madoff is getting off pretty lightly financially.

scorza · 15 Dec 2008 at 08:35

http://news.bbc.co.uk/1/hi/business/7782731.stm

Two major European banks announce that they are exposed to this possible con, including Santander, who I have my mortgage with (via Abbey). Uh oh! :eek:

platinum87 · 15 Dec 2008 at 08:48

if he has stolen even a few % of that money, he should be able to disappear forever

Moredhel · 15 Dec 2008 at 08:57

Once the investors put contracts out on him, he probably will.

singist · 15 Dec 2008 at 09:28

Title should read ......

Biggest ever fraud committed by Hedge fund manager ....... that has been exposed.

platypus · 15 Dec 2008 at 10:56

http://business.timesonline.co.uk/t...ectors/banking_and_finance/article5344059.ece

£400m exposure for RBS..such bad news.