Bernard Madoff has become one of the most infamous non-violent people in the history of the world for operating the largest Ponzi scheme ever, widely quoted at something like $50 billion.
But some experts say that the number is exaggerated, and suggest that the actual figure could be less than $20 billion. Stephen Harbeck, president of the Securities Investor Protection Corp. told the Associated Press that the $50 billion figure includes fictitious returns reported to investors.
Whether the scam was $50 billion or $10 billion, it's still easily the largest con game operated by an individual in history.
But here's the thing: Even if that $50 billion includes false profits reported, it's still a very real loss to the investors who were screwed by Madoff.
Madoff only showed investors returns in the 10-15% range, so a foundation that gave him $100 million ten years ago would have something like $300 million today. If you ask the foundation how much it lost to Madoff, it will feel like $300 million, because that was how much he was told the account was worth. It made financial decisions based on the amount its accountants were told was in the coffers.
It will likely be months or even years before regulators know the full and exact extent of the Madoff-related losses and the truth is that the exact dollar figure -- $10 billion, $20 billion or $50 billion -- is almost irrelevant.
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Reader Comments (Page 1 of 1)
3-06-2009 @ 6:06PM
bbagin10977 said...
Wow, I feel much better knowing he only scammed $20 Billion instead of $50 Billion. I'm sure his victims are just as relieved as me to hear the good news. Get ready to be someone's girlfriend Bernie.
3-06-2009 @ 6:21PM
scooter1904 said...
bo bo is waiting.....................
3-06-2009 @ 11:44PM
Bruce Calabrese said...
You know he didn't do this himself. No one will be held accountable. Where were the auditors? If he didn't make a trade in 13 years it could not have been missed by the auditors. Watch how this gets swept under the carpet and Bernie gets 5 years in Club Fed. Once again, Govt. auditors not accountable and not SEC's responsibility.
3-07-2009 @ 9:18AM
Lawrence Phoenix said...
I UNDERSTAND HE'S MAKING A CASE FOR KEEPING $69 MILLION WHICH HIS WIFE SAVED OUT OF THE 'EGG MONEY'......(IN BYGONE RURAL AMERICA,EACH SMALL FARM WOULD HAVE CHICKENS WHICH THE WIFE WOULD SELL EGGS AS A SMALL CASH SOURCE )...
3-07-2009 @ 10:18AM
Daryl said...
TO THE TUNE OF "GREEN ACRES"
BERNARD MADOFF:
San Quentin is the place to be,
Incarceration is the life for me,
Walls that go around the prison yard, Keep Manhattan and put me under armed guard.
RUTH MADOFF:
No, New York is where I'd rather be,
I get allergic smelling pee,
I just adore a penthouse view,
Bernie' I love you, but give me Park Avenue.
BERNIE:
The warden!
RUTH:
My garden!
BERNIE:
The cells!
RUTH:
The sales!
BERNIE:
You are my girl...
RUTH:
Goodbye, outside world!
TOGETHER:
San Quentin, here we come!
Lyrics by General Anarchy and Third Position Army
www.youtube.com/watch?v=eQ9vTJLIA8M
3-07-2009 @ 8:02PM
william lindblad said...
Personally, I don't think that we should put Bernie in jail for more than a couple years.
Some of the people he screwed have their own ways of dealing with his type. And no, they don't usually use violence, but the can make life harder than any he is going to find in prison. Why waste anymore taxpayer money?
And Zac, this is a bad analogy as the list of those that Bernie screwed is mighty long. So what if it ultimately is 8,000 as opposed to 11,000.