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.

All labels observed (7)

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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
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
culturalImpact subject of numerous books, documentaries, and films
discoveredIn December 2008
durationApproximate several decades
estimatedActualLosses about 17–20 billion US dollars (principal)
exposedBy Bernard L. Madoff
linked to: Bernie 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
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 (via Optimal Investment Services)
linked to: Banco Santander

Elie Wiesel Foundation for Humanity
Fairfield Greenwich Group
Hadassah, the Women’s Zionist Organization of America
UBS-linked feeder funds
notableWhistleblower Harry Markopolos
officeLocation Lipstick Building, 885 Third Avenue, Manhattan
perpetratedBy Bernard L. Madoff
linked to: Bernie 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 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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Referenced by (10)

Full triples — surface form annotated when it differs from this entity's canonical label.

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