Results 1 to 2 of 2

Thread: Madoff Story Smells Funny

  1. #1
    Inactive Member godoftrading's Avatar
    Join Date
    April 20th, 2008
    Posts
    94
    Follows
    0
    Following
    0
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quoted
    0 Post(s)

    Post

    http://www.ritholtz.com/blog/2008/12...-smells-funny/

    I have no special insight into the Madoff story.

    Consider this: Running a billion dollar Ponzi scheme has to be very time consuming. Running a $50 billion Ponzi scheme by yourself, at age 70?

    I don?t think it can be done.

    Just generating the phony transaction receipts is a full time job. How did this son-of-a-***** do it all by himself? Madoff HAD TO HAVE HELP.

    I simply cannot believe he did it himself, all alone. His entire scheme was predicated upon finding another 1% of assets every month to payout to the prior investors. Between raising moeny and running operations, it was more than a 1 man job.

    And when the market hit the skids and topped out so fast ? it fell much quicker in 2008 than in 2000 ? he ran out of manuevering room. Madoff had to know he was going down, and everyone who was working with him ? everyone who knew of the scheme ? they were going down, too.

    So he confessed ? TO HIS SONS. AND THEY TURNED HIM IN.

    And Bloomberg reports they are already represented by Martin Flumenbaum, a lawyer.

    ~~~

    Maybe I?ve read one too many detective novels, but consider this strictly hypothetical, based on-no-facts whatsoever, wildly imaginative hypothesis: If I were running a $50 billion Ponzi scheme, I would have to bring in someone close to help me with it.

    Who is closer than my family?

    When it became clear there was no where else to turn, instead of bringing down the entire dynasty,

    I would have them turn me in, to protect the family and what left of the legacy.

    I would take the fall so they wouldn?t have to.

    ~~~

    As I noted, I have no special facts, no insight into this what-so-ever. Other than the story we have been fed so far doesn?t make any sense.

    Who was Madoff?s accomplices? I have no idea, but there has to be some! If I were the SEC, I would be looking over close friends and family closely. Very, very closely.

    Your view?

  2. #2
    HB Forum Owner Broreart's Avatar
    Join Date
    October 31st, 2020
    Posts
    15
    Follows
    0
    Following
    0
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quoted
    1 Post(s)

    Re: Madoff Story Smells Funny

    Madoff was able to pull off this fraud for so long because he was extremely good at hiding his tracks. He would make trades through shell companies and offshore accounts. No one could find anything suspicious.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •