As if the plummeting stock market wasn't enough to put a serious damper on Wall Street's year, last month Wall Street big shot Bernard Madoff was arrested on charges of perpetrating the largest fraud in history. Madoff bilked Wall Street investors of a staggering $50 billion. Madoff's actions have left possibly 10,000 plus investors in the lurch, some with devastating losses. In addition to investment companies, investors included elderly victims and charities. Though nothing more than a common Ponzi scheme (early investors paid off by money from later investors), Madoff carried it out to unfathomable proportions. Madoff managed to avoid suspicion by promising moderate gains and providing detailed bogus statements.
Scott Burns writes an interesting article that puts Madoff's $50 billion theft into perspective based on United States crime statistics.
Also: One victim's story here.
1 day ago