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Who is Bernie Madoff and what exactly did he do?

January 3, 2023

The post Who is Bernie Madoff and what exactly did he do? first appeared on Ready Steady Cut.

Who is Bernie Madoff and what exactly did he do? We dive into the man behind one of the biggest Ponzi schemes in US history.

Bernie Madoff is one of the classic examples of Wall Street corruption and has gone from the grace of the rich and respected businessman to that of the poor and hated fraudster. It is responsible for the fact that thousands of people lose their money and, in many cases, their livelihoods.

The story of his rise is not as well known as his fall. However, having grown up in Queens, New York, during World War II and starting his career in 1960, he traded honestly in the early years, but Madoff would fall victim to the greed common on Wall Street and start scamming his investors. .

Almost two years after his death, netflix releases a documentary on the rise and fall of Madoff. It’s important to look back at what Madoff did and how he finally got caught.

Who is Bernie Madoff?

Bernard Lawrence Madoff, otherwise known as Bernie Madoff, was born on April 29, 1938 and was the mastermind of the biggest Ponzi schemes in US history. He is a disgraced businessman and former chairman of the NASDAQ stock exchange, and at the time of his death was serving a 150-year prison sentence.

Madoff began his career on Wall Street in 1960 as a penny stock trader at his own trading company called Bernard L. Madoff Investment Securities LLC, of ​​which he was president until his arrest. He developed his business with the help of his father-in-law, Saul Alpern, who was an accountant.

The SEC (US Securities and Exchange Commission) investigated the company on and off starting in 1992 but failed to figure out the fraud, which angered many people as it was said they could have prevent some of the damage done. .

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Bernie Madoff died at the age of 82 at Federal Medical Center, a prison for inmates with health needs, in Butner, North Carolina, of natural causes in 2021.

What exactly did Bernie Madoff do?

Bernie Madoff ran the biggest Ponzi scheme in US history. A Ponzi scheme is a form of fraud that attracts investors and pays out profits to previous investors with funds from newer investors. He lied to duped clients about managing more money than he was and gave his clients fake account statements showing returns of up to $50 billion, but in reality no transaction had taken place.

This program is believed to have operated for several decades, with Madoff himself claiming he started it in the 1990s, but federal investigators believe it began as early as the mid-1980s and possibly even to the late 1970s.

How much money did Bernie Madoff lose?

Over the decades of the Ponzi scheme, there have been up to $20 billion in cash losses and $65 billion in paper losses. Paper losses refer to unrealized profits or losses that only become actual profits or losses. According to The Guardianthe scheme resulted in a loss of at least $17.5 billion in the savings of thousands of people.

Some notable celebrities who have been caught up in the fraud are director Steven Spielberg and actor Kevin Bacon. During an appearance on the SmartLess podcast, Bacon opened up about the damage the fraud has done to his family, saying: “There are obvious life lessons there. You know, if something is too good to be true, it’s too good to be true. And when something like that happens, you know, you look at yourself, and then you’re like, ‘Well, that sucks. Let’s roll up our sleeves and get to work, you know? »

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The Madoff Victim Fund, established in 2013 to help more than 40,000 victims, has provided more than $4 billion in financial assistance.

What Was Bernie Madoff’s Net Worth When He Died?

At the time of his death in April 2021, Bernie Madoff’s net worth was approximately minus $17 billion. People who have a negative net worth have debts (legal debts due) that are greater than the value of their assets. In Madoff’s case, that’s because he was ordered to pay $170 billion in restitution (money that the court orders to reimburse victims for financial losses).

The judge who sentenced Bernie Madoff stripped him of all his personal assets, including real estate and investments. This is said to have contributed to the collapse of Madoff’s net worth, which in December 2008 stood at $64.8 billion.

CNBC reported that Madoff had earned a total of $710 in prison, after completing nearly 3,000 hours of prison labor. Madoff was only paid about 24 cents an hour.

Who denounced Bernie Madoff?

When investors started to worry about the impending financial crisis and started asking for their money, things went downhill for Bernie Madoff. In early December 2008, investors requested redemption payments totaling $7 billion. Usually, when investors requested these payments, Madoff would deposit the investors’ money into his business account and withdraw the requested money.

The problem with this payment, however, is that Madoff only had $234 million in his account, not enough to pay the investors. According to FBI reports, once Madoff realized he couldn’t repay what he owed, he confessed to his sons, Mark and Andrew, and his brother Peter, about the Ponzi scheme saying it was all over. “a big lie”. Madoff’s sons would report him, with the FBI raiding his home while Madoff was in his bathrobe.

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Madoff would later plead guilty to securities fraud and several other charges. He is expected to serve 150 years in prison and pay $170 billion in restitution. He died in prison after serving 12 years of his sentence.

Is there a Netflix documentary on Bernie Madoff?

On January 4, 2023, Netflix will release a four-part documentary series about the rise and fall of Bernie Madoff titled Madoff: The Monster of Wall Street. Realized by Joe Berlinerit stars Joseph Scotto as the titular Madoff, Ginger O’Toole as his wife, Ruth Madoff, Cris Colicchio as brother Peter Madoff, and Kevin Delano and Alex Olson as sons Andrew and Mark Madoff, respectively.

Documentary trailer says people think they know the story and think it’s just one man, but claims you can’t handle a 50 billion Ponzi scheme dollars without everyone knowing.

Critics have already come out for it, it is called extraordinary by Stable cut ready and one of fiction horizon, saying that while the execution is boring, there’s an interesting story to justify its existence.

The post Who is Bernie Madoff and what exactly did he do? first appeared on Ready Steady Cut.