TigerSoft Freedom News Service 12/15/2008 www.tigersoft.com
Madooff's big mistake was he stole from the very rich. If he had taken it from
poor, working people like banks do everyday with their excessive rates and charges,
the system would never have disturbed him.
Investors Get Another Hard Lesson:
Trusting Wall Street, The SEC and The Bush
Administration Can Put Even Millionaires in The Poor House.
Investors Would Do Much Better Trusting TigerSoft
2/5/2009 TigerSoft Condemnations of SEC vindicated:
US Rep Ackerman slams SEC for Ignoring Warnings about Madoff
Rampant and Unpoliced Insider Selling.
Deregulation of Short Selling Syndicates and Pools. 7/18/2008
The SEC's Role and The Crash of 2008. 10/12/2008
The Dominant Corporate Media
Refuses To Ask Key Questions about The Madoff Heist.
The Bernie Madoff - Behind The Smile.
What's in A Name?
Madoff Made Off with $50 BILLION.
SO MANY UNANSWERED QUESTIONS.
1. Why IS Madoff Allowed out on Bond?
2. Who Else Was Involved?
3. Where Is The Money Now?
4. Who Got Taken and for How Much?
5. What Were The Many Red Flags?
6. Where Was Bush's SEC in All This?
I Warned You That The SEC's Cox
Was A Fox in The Henhouse.
7. Why Do Wall Street Crooks Get Little More
Than A Slap on The Wrist.
8. How Many More Ponzi Crooks on Wall Street
Are Still Out There?
US Rep Ackerman slams SEC for Ignoring Warnings about Madoff
Deals of the Day: Was the SEC Too Friendly With Bernie Madoff?
Shana Madoff and the Madoff Family SEC Connection
Too Little, Too Late Department: SEC Offers Mea Culpa on Madoff Flop
The Madoff infinite loop
by William Schmidt, Ph.D. (Columbia University)
(C) 2008 All rights reserved. Reproducing any part of this page without
giving full acknowledgement is a copyright infringement.
Why Should Investors Ever Again Trust
Wall Street after The Madoff Theft of $50 Billion?
A Market Maker, An Ex-President of The NASDAQ,
A Wharton School of Business Graduate...
A Clean Bill of Health from the SEC in 2007...
What's in A Name?
As you decide who to trust, marry, do business with,
it might be a good decide to consider their name. The latest
big crook on Wall Street, the guy who made off with $50 billion
is named Madoff. That's what he did. He made off with
all that money. The financial world is amazed over Madoff's downfall.
Maybe, with that name, someone should have had some
second thoughts about trusting him.
When I heard the name Michael Milken, I immediately thought
of how he should have been named "Michael Milkem". Names
are important: to Henry Paulson, $700 billion is a paltry sum.
I've always been struck by how names affect people careers.
My name, "Schmidt" means a smithie, like a blacksmith. I saw
a family coat of arms when I was young. It contained a muscular
forearm and biceps. It affected me. I like the idea of making
something, even if it is intellectual and intangible.
Names are important. I have had a number of customers
whose last names suggested an interest in the stock market:
"Cash", "Stocks", "Nichols" and "La Chance". I first
became aware of this in graduate school, when I was interested
in "Kremlinology", specifically how rivalries at the top of the
Communist Party in the old USSR shaped policies and liberalization.
I noticed that a leading Kremlinologist was named "Robert
I don't read Dear Abby very often. But here are relevant quotes
from her internet site:
"One of my dearest friends is a professional
landscaper of golf courses, highways and schools.
His name? Ross Weed! -- Bonnie G. Chapin, S.C.
"My husband, last name Graves, is a funeral director.
- - Dianne G., Ripley, Miss
"The first time I took my grandchildren to their
doctor, their regular physician was on vacation. The doctor who
was filling in for him was named Dr. Needle. I kid you not.
-- Theresa S., Sparrow Bush, N.Y.
"In Portland, Ore., where I reside, there are three
orthodontists: Dr. Payne, Dr. Fear and Dr. Rensch (pronounced
"I swear this is true: When I visited my first gynecologist
when I was in college (the University of Massachusetts at
Amherst), his name was Dr. Clapp. -- V. Cook, Blue Hill, Maine"
( Source: http://findarticles.com/p/articles/mi_qn4188/is_20061214/ai_n16906224 )
Madoff Made Off with $50 BILLION
On December 11, 2008, Bernie Madoff was arrested and charged
with running a $50 billion Ponzi scheme, as he himself described it.
He was a former chairman of the NASDAQ and ran a hedge fund
that now has more than $50 billion in losses. As long as he could
find new money to invest with him, he could continue to pay high
returns. But as confidence dropped off with the market decline,
new funds dried up and the falseness of his claims at being
a master trader could no longer be hidden.
"Madoff told senior employees of his firm on Wednesday that "it's all just one big lie" and
that it was "basically, a giant Ponzi scheme," with estimated investor losses of about $50 billion,
according to the U.S. Attorney's criminal complaint against him. A Ponzi scheme is a swindle
offering unusually high returns, with early investors paid off with money from later investors...
The $50 billion allegedly lost would make the hedge fund one of the biggest frauds in history.
When former energy trading giant Enron filed for bankruptcy in 2001, one of the largest at the
time, it had $63.4 billion in assets."
( http://news.yahoo.com/s/nm/20081212/bs_nm/us_madoff_arrest )
In 2007, he assured his investors: "It is virtually impossible
for anyone to violate all the rules and steal investors' money."
What a brazen lie! In fact, he was pulling off one of the biggest
scams and Ponzi schemes in Wall Street's filthy past. He was
a widely respected Wall Street advisor. He was a Wharton
School of Business graduate.
Now he has been released on bond! At this moment his company
makes a market in such NASDAQ stocks as Apple, EBAY and Dell.
U.S. prosecutors have charged Madoff with a single count of
securities fraud. He faces up to 20 years in prison. He can be
fined no more than $5 million. He was released after posting
a bond of $10 million. What is to prevent him from fleeing the
country? What is to prevent him from using his freedom to conceal
the money he has embezzled or arrange large amounts of it to
go to secret Swiss bank accounts.
"About a dozen angry investors gathered on Friday in the lobby of the Lipstick Building
in midtown Manhattan, where the market-making firm and advisory business are headquartered,
demanding to know the fate of their money. One woman said that when she called the firm's
offices on Thursday she was told it was "business as usual." Another investor groused,
"Business as usual? Of course it's business as usual. We're getting screwed left and right."
Police later evicted the small group from the building. ( Source: )
"Capital Punishment for Bernie Madoff". A sign seen in front of Madoff's 2 billion dollar
Manhattan duplex. See "Why I Hate Bernie Madoff" . Hundreds gathered there.
Watch A Photographer Shove Bernie Madoff (VIDEO)
"Beyond U.S. hedge funds, more corporate names disclosed exposure to Madoff. Late Sunday, some of Europe's biggest banks acknowledged they, too, were exposed to Madoff's investment fund.
"Switzerland's Reichmuth & Co. said the private bank has $327 million at risk. It told investors that they ``sincerely regret'' being affected.
"French bank BNP Paribas estimated its exposure Madoff's fund could lead to 350 million euros ($467 million) in losses.
"A charity in Massachusetts that
supports Jewish programs, the Robert I. Lappin Charitable Foundation, said it had
"Other institutions that believed
they had lost millions included The North Shore-Long Island Jewish Health System
"Hedge funds and other investment
groups looked like big losers too. The Fairfield Greenwich Group said it had
"The losses may have extended far
beyond the coffers of the wealthy and powerful.
"Harry Susman, an attorney in
Houston, said he represents a group of clients who had unknowingly become entangled
"They had no idea they had
exposure," Susman said. He said his clients were now dumbfounded as to how the fund
"Then theres UniCredit SpA, the Italian banking group. Pioneer Investments, its Dublin-based fund manager, has indirect exposure to Ponzi scheme through feeder funds that channelled money into Madoff. Pioneer isnt saying how big its exposure wasbut the Financial Times says that two of its funds had substantially all of their $835 million invested in Madoff.
"A large number of Swiss private banks were also exposed. The total exposure of Geneva-based banks alone is more than $4 billion, according to Le Temps. Then theres BNP Paribas SA, the French bank, which has exposure, according to The Wall Street Journal. Meanwhile, Man Group, the London-based fund manager, had roughly $350 million lodged with Madoff via its RMF operation. The alleged fraud has also affected Nomura. The Japanese broker marketed a feeder fund to its clients. ( Source: http://www.livemint.com/2008/12/14232014/Advisers-should-pay-up-Madoff.html )
What Were The Red Flags?
"2. Aksia discovered a 2005 letter
to the Securities and Exchange Commission from a financial advisor who supposedly studied
Madoff's operations. That letter asserted Madoff was running a Ponzi scheme. There was
also a Wall Street Journal story at the time about one of the Madoff's associated
"feeder funds" getting shut down in 1992.
"Some trading pros said Mr. Madoff's purported strategy couldn't be pulled off
profitably while managing tens
"It seemed implausible that the S&P 100 options market that Madoff purported
to trade could handle the size of the combined feeder funds' assets which we estimated to
be $13 billion," Mr. Vos says.
Mr. Vos says his firm hired a private investigator and determined that the accounting
firm had only three employees, one of whom was 78 and lived in Florida, and another was a
secretary, and that it operated in a 13 foot by 18 foot office. His firm felt that was too
small an operation to keep an eye on such a large firm operating a complicated trading
strategy. A message left for the accounting firm was not returned."
"In a statement late Friday, the SEC said "staff from the Division of Enforcement in New York completed an investigation in 2007, and did not refer the matter to the Commission for enforcement action." The SEC said it reopened the investigation Thursday. It's not clear what the focus of the 2007 investigation was, or why it was closed. A person familiar with the matter said it related to issues raised by Mr. Markopolos.
"Also striking some as odd: Mr. Madoff operated as a broker dealer with an asset management division. Why not simply act as a hedge fund and pocket big gains, rather than profit from trading commissions as the firm seemed to be doing, they asked.
"Joe Aaron, for long a hedge fund professional, found that structure suspicious
and in 2003 warned a colleague to steer clear of the fund. "Why would a good
businessman work his magic for pennies on the dollar?"
Wall Street Crooks Need A Lot More Than