Bernie was palling around with SEC types---Bernie bragged his niece married a SEC regulator----and many of his "investors" went to the wedding----figuring they had an "in" the rest of us poor slobs did not have. Bernie could get even more money for his investors without the SEC horning in. In effect, they were all aiding and abetting this fraud.
Most of his investors figured Madoff was doing something illegal---frontrunning---that's why they were getting big returns (16% even in down markets). These "smart, rich" types were never bothered about Madoff's sub rosa activities.
Madoff's investors----who were astute businessmen---- pocketing 16% returns calculatedly ignored this scam. Most of his investors figured Madoff was doing something illegal---frontrunning---and that's why they were getting big returns (16% even in down markets).
I do not believe these so-called "investors" sob stories for a nanosecond. Impossible to believe astute businessman who made fortunes in competitive businesses would allow themselves to be scammed.....unless......these privileged elites were in collusion with Madoff to engage in a massive tax evasion scheme. Tax evasion would explain why savvy, astute businessmen were giving this guy huge sums ---$100-500 million--- to “invest.” Keep in mind, at the end Madoff was left with some $300 million out of $50 billion. That much money does not just evaporate.
Apparently Madoff kept a cut of the “investment” and wire-transferred the bulk offshore to friendly money laundering havens-----out of sight of the IRS, SEC, and US banking laws. The whole scam crashed b/c Madoff probably wanted a bigger cut but the "investors" refused.
NOTE: They keep saying they are "wiped out." However, savvy investors DO NOT put all their eggs in one basket as these people did. This whole deal smells to high heaven. People stupid enough to give Madoff $100-500 million to evade taxes are also criminals.
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TAX-EXEMPT FRAUD Madoff was handling millions in tax-exempt funds for so-called "charities." The IRS says the biggest potential for IRS fraud are these tax-exempt non-profit charities doing deals with other tax-exempt non-profits----all posing as do-gooder "foundations" and “charities.” For instance, the charity owners go on luxury trips "for charity" which are charged to the tax-exempt. A huge part of the fraud is tax evasion-----one non-profit "donating" to another non-profit "charity." This is nothing more than money laundering.....the charity takes a cut then converts the bulk of the donation to an offshore account for the donor's use later---out of sight of the IRS, SEC, and US banking laws.
> Madoff’s “investors” are decidedly NOT victims......although they will put on a b-i-i-i-i-i-g victim act...deserving of an Academy Award.
I wonder why you say that. So far there hasn’t been any serious suggestions of collusion between Madoff and his investors for the purpose of fraud or tax evasion.
Is that what you are suggesting?
Absent that, the real question is “who is the Auditor and what was his Opinion?” I suspect an investment of this nature would have required a Prospectus to be filed with the SEC, so at some point somebody was probably asked for an Unqualified Opinion. Possibly even once per year (not sure of your US laws) the Auditor might have been asked to give an Opinion on the fairness and accuracy of the numbers.
Could this be more evidence of the "fruit" of decades of affirmative action? I wonder whether the judge who ruled that the Federal government has to pay the victims, could be an investor/victim, too? It looks to me that greed and idolatry played major roles in motivating investors to sell their homes and put money into a questionable scheme.
These “victims” are no different than the ones who go along with the Nigerian scam of accepting and holding other people’s stolen money into their personal accounts for a percentage. They participated in the fraud by believing Madoff’s insider contact stories. The difference is that the “victims” of Nigerians never see a cent. They should all go down.
bttt
They wire millions to offshore banks for a cut, the donor also get's a tax deduction too...right?