Who is Bernie Madoff?
Bernard Lawrence Madoff, more commonly known as “Bernie” is a well-known American-financier that executed the largest Ponzi scheme ever. He defrauded countless investors that accounted for billions over a period of about 17 years.
Despite, his claims of generating steady and large returns through the investing strategy known as “split-strike conversion”, which actually does exist, Madoff deposited his client’s funds into one bank account, where he would pay out clients that wanted a cash out. He funded these redemptions in the way of attracting “new” investors. He failed to maintain this fraud when the markets took a sharp turn in the late part of 2008. Here are 10 interesting facts about Bernie Madoff.
Facts About Bernie Madoff
1. Bernard Lawrence Madoff was born on the 29 April 1938, in Rockaways section of Queens, N.Y.
2. He went onto graduate from Far Rockaway High School. He met Ruth Alpern in high school who later became his wife.
3. When he finished high school, he went to the University of Alabama for a year before he transferred to the Hofstra University. In 1960 he graduated from Hofstra University with a degree in political science.
4. He went to Brooklyn Law School briefly, before leaving to start his company known as Madoff Investment Securities in the year 1960. He used the $5,000 he had managed to save from repairing and installing sprinkler systems and from working as a lifeguard.
5. His reputation and prominence started to grow and he went onto help pioneer electronic-trading. He also testified in front of congressional committees about financial matters, along with serving as a chairman on the board for the Nasdaq Stock Market.
6. He was also an avid golfer who belonged to several exclusive clubs.
7. His sons, Mark and Andrew were made senior employees in his company. They both turned their dad into the federal authorities in 2008, when the Ponzi scheme was made public.
8. The scheme was estimated at around $65 billion and is suggested as the largest in Wall Street history.
9. At the time of receiving charges for the fraud, he owned yachts in New York, Florida and the Mediterranean, a $7 million penthouse based in Manhattan, a villa situated on the French Riviera, a mansion based in the Hamptons, and a 56-foot boat that he named “The Bull.”
10. The 11 counts of theft, money laundering, perjury and fraud ended with Madoff being sentenced to 150-years in prison.
If you are a victim of a similar scheme, it is important that you speak with an attorney as soon as possible. Sometimes, these schemes are not only tried in a criminal court, but a civil as well.