Bernie Madoff, one of history's greatest crooks, dies

Bernie Madoff, one of history's greatest crooks, dies

 



Bernie Madoff, convicted of setting up the biggest Ponzi scheme in history, has died in a federal prison.

Madoff reportedly died of natural causes at the Federal Medical Center in Butner, North Carolina.


Last year, his lawyers sued to get Madoff, 82, out of jail because of the Covid-19 outbreak; the request was denied.


Bernie Madoff has recently suffered from a kidney condition and other chronic medical conditions.


Bernie Madoff, who went to prison in 2009, was sentenced to close to 150 years for defrauding thousands of people. Madoff, once called the king of Wall Street, was found to have formed the largest known pyramid scheme and committed nearly $ 65 billion in fraud.


BIGGEST CORRUPTION IN WALL STREET HISTORY


In Washington, Madoff, an expert sought by market regulators who for years sought advice on a number of regulatory rules and served on the Market Information Advisory Committee established in 2000 to protect investors, defrauded everyone small and large.


Financial experts have often expressed concerns about Madoff's activities over the past 10 years, including a letter to the SEC in early 1999 accusing Madoff of running a Ponzi game, but the SEC did not conduct a routine review of Madoff's investments until its corruption was revealed.


Madoff's victims include hedge funds, banks, Jewish foundations, as well as wealthy and small investors in North and South America and Europe. Along with Florida retirees, actors Kevin Bacon and Kyra Sedgwick and Nobel Peace Prize winner Elie Wiesel were among those who lost money to Madoff.


WHAT IS THE PONZI SYSTEM? 


The Ponzi system, a fraudulent form of investment first implemented by Charles Ponzi in 1910, or ‘Ponzi chain’, is a method of fraud in which people who are included in the system pay with their own investments or with money from subsequent participants.



A system that always promises above-average earnings ensures that it meets these expectations first. In this case, the new investors use their money by paying the old investors, and the Ponzi system is developed.


First, the impression that a person has had a great opportunity is created and confidence is provided. The collapse of the system now begins with the pyramid becoming too large and unstable. If there are not enough new participants in the Ponzi system, which is basically in need of new participants, the chain collapses.

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