Wealthy Investors Lose Fortunes in Wall Street Scam
Although the full extent of the damage from broker Bernard Madoff's alleged super-swindle has yet to be determined, it's clear by now that the collapse of his vast pyramid scheme may spell utter disaster for several of his top investors -- some of whom might not know yet that they're broke.
Although the full extent of the damage from broker Bernard Madoff’s alleged super-swindle has yet to be determined, it’s clear by now that the collapse of his vast pyramid scheme may spell utter disaster for several of his top investors — some of whom might not know yet that they’re broke.
Wait, before you go…The Independent:
Enough details of the fallout were emerging yesterday to begin to judge the mayhem this one-time chairman of Nasdaq, and Democratic Party and Jewish charity benefactor, has wreaked. Those likely to have lost everything include a Jewish charity that had its $7m assets lodged with Mr Madoff’s firm, and had to lay off its staff on Friday, and Manhattan and Florida socialites. Many, in the words of an investigator, are now “destitute”. Corporate losers include Nicola Horlick … , the British hedge-fund manager known as “Superwoman” for her hectic private and business lives, whose Bramdean Alternatives seems to have lost at least £10m; and, reportedly, the Japanese brokerage house Nomura.
Meanwhile, Mr Madoff, who until a few days ago was courted by investors desperate to be allowed to join his select client list, is out on bail, seemingly resigned to the penal fate that awaits. He appears to be co-operating fully with investigators from the FBI and the Securities and Exchange Commission (SEC), and a court-appointed receiver is trying to “secure the assets, funds and location” of his businesses and “determine the scope of the misconduct”. It may take some time.
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If only investors knew exactly what they were getting into—and what they aren’t going to get out of it.
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