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Bernard Madoff Investment fraud

Bernard Madoff Investment Fraud Lawsuits

Bernard Madoff Investment Fraud | Lawsuits, Lawyers | SEC, Emergency Relief, Investors

The lawyers / attorneys at our firm are offering consultations to investors who sustained substantial financial losses as a result of securities fraud allegedly committed by Bernard Madoff.  On December 11, 2008, Madoff was arrested by the FBI and charged with a single count of securities fraud.  According to media reports, the "Ponzi scheme" Madoff ran constituted a fraud that could ultimately be "bigger than Enron."

The Madoff securities fraud lawyers at our firm are actively investigating this alleged wrongdoing. If the initial estimates of losses prove true, the Madoff securities fraud  would  be nearly five times larger than the accounting fraud that drove telecom company WorldCom into bankruptcy proceedings in 2002, The Wall Street Journal said.  Investors who trusted Madoff with their money could see millions, if not billions, vanish.

The Securities and Exchange Commission (SEC) characterized the Madoff fraud as "stunning" and "of epic proportions".  If you sustained financial losses because of the Madoff securities fraud, you may be entitled to compensation.  To discuss the legal remedies available to you, please contact one of the Madoff securities fraud lawyers at our firm as soon as possible.

Allegations Against Bernard Madoff

According to The Wall Street Journal, the 70-year-old Madoff - once a chairman of the Nasdaq stock exchange - is the founder and primary owner of Bernard L. Madoff Investment Securities LLC. The firm is primarily known for its business in market-making, or serving as the middleman between buyers and sellers of shares. However, Madoff also oversaw an investment-advisory business that managed money for high-net-worth individuals, hedge funds and other institutions.

The Wall Street Journal reported that Madoff’s firm was the 23rd-largest market maker on Nasdaq in October 2008, handling an average of about 50 million shares a day. It took orders from online brokers for some of the largest U.S. companies, including General Electric Co. and Citigroup Inc.

The fraud allegedly perpetrated by Madoff may be the largest fraud ever blamed on a single individual.  According to the Associated Press, nearly all of the allegations stem from what Madoff told three senior employees of his firm.

According to federal investigators, most of the alleged fraud involved Madoff's investment-advisory business that managed money for high-net-worth individuals, hedge funds and other institutions.  That business served between 11 and 25 clients, the Associated Press said.

According to Reuters, Madoff's advisory business had $17.1 billion of assets under management. But many other investors may have had indirect exposure by investing through the hedge funds and other of the firm's clients.  Two hedge funds that invested with Madoff were the $7.3 billion Fairfield Sentry Ltd and the $2.8 billion Kingate Global Fund Ltd. Fix Asset Management and Tremont Capital Management also invested heavily with Madoff.

Employees told FBI investigators that  Madoff ran the investment arm on a separate floor of the firm's offices. According to The Wall Street Journal, the employees said Madoff kept the financial statements from the firm under lock and key and was "cryptic" about the firm's investment business.

According to the complaint, Madoff  allegedly confessed to employees that he perpetuated the massive fraud scheme, which Madoff himself said could cost investors at least $50 billion.  The employees claimed Madoff even referred to his investment firm as "one big Ponzi scheme.

The FBI charged that Madoff's investment advisory business had "deceived investors by operating a securities business in which he traded and lost investor money, and then paid certain investors purported returns on investment with the principal received from other, different investors, which resulted in losses of approximately billions of dollars."

The Wall Street Journal characterized the Madoff securities fraud as a "split-strike conversion," which involves buying stocks and buying and selling options against them.   According to the Journal, because Madoff's returns were so steady - and because Madoff was such a well-liked and well-respected figure - investors felt at ease putting a large chunk of their wealth in his fund.

Legal Help for Victims of Madoff Securities Fraud

In addition to the charges filed by the FBI, the SEC has filed a civil suit against Madoff.  The SEC said it was seeking emergency relief for investors, including an asset freeze and the appointment of a receiver for Madoff's firm.

If you or someone you know suffered financial losses as a result of fraud committed by Bernard Madoff, you have valuable legal rights.  Please fill out our online form, or call 1-800 YOURLAWYER (1-800-968-7529) as soon as possible to discuss your case with one of our Madoff securities fraud lawyers.


Bernard Madoff Investment fraudRSS Feed

Madoff Friend Pulled Down Big Profits

Nov 30, 2009 | Parker Waichman LLP
Based on court papers, Irving Picard, the court-appointed trustee liquidating Bernard Madoff’s assets, is focusing on the 96-year-old Carl Shapiro, reports Newsday.Shapiro a philanthropist known for founding Kay Windsor, a women’s apparel firm, in 1939, is said to be almost blind in one eye, has problems in his other eye, is suffering from cardiac problems, and has been diagnosed with hypothyroidism, according to Newsday, citing court papers. Shapiro is also widely known for his...

Victims Sue SEC Over Madoff Scam

Oct 20, 2009 | Parker Waichman LLP
Two of Bernard Madoff’s victims have filed suit against the Securities and Exchange Commission (SEC) for alleged negligence, CNN reported.Madoff is now spending 150 years in prison for orchestrating a massive Ponzi scam estimated to have cost duped investors an incomprehensible $65 billion. As for the SEC, the regulator has come under fire for apparently missing warnings that something was amiss with Madoff’s investment advisory business.Since news broke of Madoff’s scheme,...

Madoff Trustee Seeks More From Cohmad Securities

Oct 12, 2009 | Parker Waichman LLP
The court-appointed trustee charged with liquidating Bernard Madoff’s business is seeking to recuperate $245 million from bogus profits in his lawsuit against Cohmad Securities Corporation, said The figure represents an increase from $213 million, said, which noted that Cohmad Securities shared office space with Madoff.Madoff, 71, was sentenced to 150 years in prison for running a massive Ponzi scheme that is estimated to be the largest in history and which...

Madoff Report Said to Slam SEC

Aug 31, 2009
Issues surrounding the Securities and Exchange Commission’s (SEC) oversight of Bernard Madoff—now spending 150 years in prison for orchestrating an historic Ponzi scam—have raised serious questions for months now. According to FOX Business, the SEC’s inspector general, H. David Kotz, will be delivering a scathing report to the agency discussing its part in failing to notice or prevent Madoff’s Ponzi scheme estimated to have cost duped investors an incomprehensible...

Preparations for Madoff Auction Underway

Jul 27, 2009 | Parker Waichman LLP
As part of the ongoing Bernard Madoff financial scandal, federal marshals are inventorying possessions from Ruth and Bernard Madoff’s $7.5 million Manhattan penthouse and $3.5 million Montauk home in anticipation of an auction. Newsday reports that the contents at both well-appointed properties are being listed in detail, citing officials.According to Newsday, contents include a Steinway piano and silverware and that the properties and tens of millions of dollars in assets were turned...

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