The person in charge of the major pyramidal fraud Throughout history, he died in a prison in the United States on Wednesday, serving a sentence 150 yearsLearn about the keys, the ones affected by the case, and how the former Nasdaq president reported the scam $ 64.8 billion
(Read here: Bernie Madoff, creator of the world’s biggest scam, dies in prison)
What has Madoff done?
Financial institutions, leading investors and millionaires from around the world were defrauded by the tycoon’s company, which at the time positioned itself as one of the best managers on Wall Street.
The Madoff Fraud was made with the fortunes of large corporations through the hedge funds.
This type of private group investment in bag uses highly sophisticated investment strategies and is managed by professional companies that charge fees commissions about the results.
Which system did you use?
Madoff’s pyramid stopped operating when no new investors arrived
The system used by the American was that of the pyramid scam, which basically consists of assigning the money from shareholders who go into the fund to pay the last investors -the most profitable-.
Madoff’s pyramid, managed by your company Investment advice, stopped operating when no new investors arrived, causing the money flow to the bottom of the system.
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How did you attract customers?
The biggest con man in history was a member of the most exclusive clubs in the United States, such as the palm tree beach, where he contacted great personalities such as Steven Spielberg, on whom he could influence to invest in his business Fairfield Greenwich Group.
His victims were captured with the striking strategy split strike conversion, which promised investors to generate profits in markets in both rise concerning the baja buying shares of large companies and buying and selling opportunities for them.
The front company Bernard Madoff Investment Securities LLC, the millionaire served to perform the duties of a stockbroker without arousing suspicion, in addition to the credibility that gave him Former Chairman of the Nasdaq Index Board of Directors, the largest automated electronic stock exchange in the United States.
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Bernard Madoff sent his investors’ statements by traditional mail, never by email, so as not to leave any traces of his fraud on the net.
How did the money work?
When Madoff Investment Securities received new funds, instead of using them in the strategy offered, most of it was used to pay for the pyramid’s initial investors, leaving a minimum amount to actually invest it.
The scammer worked with banks through asset managers, so Madoff made banks like him Santander invest in your business.
With the assets the American managed and a list of top-notch clients, the late manager’s company looked like one cost efficiency more than enough.
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When the Bernard Madoff scam was discovered in December 2008, the former president came Obama he blamed the market regulators and pointed out that they had not fulfilled their duties.
Some of the investors most affected by the fraud were the French Agricultural credit, with 10 million euros and the Italian Unicredit, with 75 million, as well as the ONG de Steven Spielberg and a Nobel Peace Foundation Elie Wiesel
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