Bernie Madoff, Bernard Lawrence Madoff, born in Queens, New York on April 29, 1938, was a well-known American wall street investor and later infamous fraudster, who was found guilty of money laundering, securities fraud, and many other crimes.
Madoff grew up in a neighborhood surrounded by Jewish people in the city of Laurelton to father Ralph Madoff, mother Sylvia Muntner. He was a well-educated man, having a degree in political science at Hofstra University and before founding his own company with his wife Ruth, he briefly studied law at Brooklyn law school, a prestigious institution.
Madoff started his company in the year of 1960, Bernard L. Madoff Investment Securities. Since both of the couples had a considerable background in the financial sector, founding and managing the company was not a complicated issue for them.
Drastically after slowly climbing up the business ladder, he established himself as a credible investor and was well-known in the financial field. He formed close friendships with numerous wealthy people to whom he was convinced to invest in the stocks he recommended. Bernie Madoff's specialty was 'penny stocks', a type of low-priced stocks which were traded on the online securities market.
As Madoff’s reputation grew more, many investors started putting their money into the schemes he advised. And in fact, his credibility and fame spread so much that he was made a director of NASDAQ (National Securities Dealers Automated Quotation) and later on he served as a Chairman. Bernie Madoff enhanced his character in the field of investment by developing relationships with financial regulators, who had the complete authority of the securities market.
His malpractices and crimes were gone unnoticed for years until Barron’s newspaper writer published an article proving his money laundering, it did take a long time, but Bernard Madoff was convicted and pleaded guilty to money laundering and fraud in 2009, at the Federal Court and Madoff received the maximum punishment of 150 years in jail from Judge Denny Chin. Bernie Madoff died of natural causes while serving his sentence in federal prison on April 14, 2021. He was 82 years old.
After reading interesting facts about Bernie Madoff's marriage and Bernie Madoff's death, also check Bill Bryson facts and Bill Murray facts.
Facts About Bernie Madoff’s Wife
Ruth Madoff had a degree in psychology and also worked in Wall Street! She married Bernard Madoff on November 28, 1959, when she was just 18 years old!
The couple lost both of their sons, Mark and Andrew, before them! Madoff would have had to live to the age of 201 to make it to his release date!
Bernard Madoff served on the boards of numerous charity organizations, many of which committed their endowments to Madoff's firm. The Chais Family Foundation, the Robert I. Lappin Charitable Foundation, the Picower Foundation, and the JEHT Foundation were all forced to liquidate due to the collapse and freezing of his personal and corporate assets. After his son Andrew was diagnosed with lymphoma, Madoff contributed around $6 million to lymphoma research.
Since 1991, Bernard Madoff and his wife have donated approximately $230,000 to political causes, the majority of which has gone to the Democratic Party. Madoff established Bernard L. Madoff Investment Securities LLC as a penny stock broker-dealer in 1960 using $5,000 earned as a lifeguard and irrigation sprinkler installer, as well as a $50,000 loan from his father-in-law, accountant Saul Alpern.
Facts About Bernie Madoff’s Net Worth
In the year 2008, the couple owned assets of $823 million! Bernie Madoff's firm was started by investing $5,000 he saved while working as a lifeguard!
Ruth Madoff, Bernie Madoff’s wife has surrendered most of the $70 million worth of Madoff's assets after his arrest! By cleaning up Madoff’s mess, lawyers made a profit of $800 million!
During his trial, Ruth did not appear in court, but she did publish a statement "I'm breaking my silence today because my silence has been misconstrued as apathy or lack of sympathy for Madoff's victims, which is far from the case. I'm humiliated and ashamed of myself. I, too, am feeling betrayed and perplexed. The man who perpetrated this heinous hoax was not the same man I had known for years." Madoff's sons, Mark Madoff and Andrew Madoff told investigators on December 10, 2008, that their father had admitted to them that his firm's asset management unit was a massive Ponzi scheme (Madoff's Ponzi scheme) and that he said it was 'one big lie'.
Rather than Bernard Madoff, Jeffry Picower appears to have been the largest beneficiary of Madoff's Ponzi scheme, with his estate settling claims for $7.2 billion. The Federal Bureau of Investigation arrested Madoff the next day and charged him with one count of securities fraud. The Securities and Exchange Commission (SEC) of the United States had previously investigated his business activities but had not discovered the vast fraud.
Facts About Bernie Madoff Movie
Based on the life and crime of Bernie Madoff, several movies were made and released!
One of the well-known movies depicting the life of Bernie Madoff is ‘Wizard Of Lies’ starring Robert De Nerio as Madoff! Chasing Madoff was yet another movie that was released two years after his arrest!
Facts About Bernie Madoff Ponzi Scheme
The Ponzi scheme of Bernie Madoff came out after 2008’s financial crisis! For orchestrating a pyramid fraud, Bernie Madoff was sentenced to 150 years in prison by the federal court!
In addition to money laundering and fraud, Madoff was accused of false filings, mail fraud, and wire fraud! The origin of the Ponzi scheme draws from Charles Ponzi, a con artist who promised an unusually high return on investment only in 90 days and later served 14 years in prison in 1920 due to his fraud scheme!
The infamous Ponzi scheme of Bernie Madoff lasted for about 17 years, defrauding and manipulating thousands of Madoff's investors! During the time of his demise, Bernie Madoff was serving in FMC Butner prison situated in North Carolina!
During this time of the year, he exploited funds, laundered money, and started practicing what is known as the world’s largest Ponzi scheme. Ponzi scheme is a criminal practice where investors are misled about the source of their investment income, but exploit other numerous potential investors, so the income they earn is not from the actual investment. This is how Bernie Madoff operated his giant financial crime syndicate.
Bernie Madoff, to say the least, was the mastermind in carrying out financial scams like Ponzi schemes which did widespread damage to numerous investors. Although he did come clean, during the financial crisis in 2008, the damage he did, cannot in a short length of time be entirely recovered. His well-versed credibility and reputation as NASDAQ chairman are what led to people trusting him blindly and being the victims of the world’s largest Ponzi Scheme.
Financial expert Harry Markopolos told the SEC in 1999 that he believed the gains Madoff claimed to deliver were legally and logically impossible to achieve. It took Markopolos four minutes to realize Madoff's statistics didn't add up, and another minute to assume they were phony, according to him. Madoff pleaded guilty and was sentenced to prison for a $65 billion swindle. After Madoff pleads guilty, he was convicted to the maximum penalty of 150 years in prison.
The company operated as a third-party market trader, circumventing exchange specialist firms by directly executing orders from retail brokers over the counter. Madoff Securities was once the NASDAQ's largest market maker, and in 2008, it was the sixth-largest market maker in S&P 500 equities. Madoff's fraud probe was focused on the firm's investment management and advisory section, which it did not publish. According to The Wall Street Journal, federal authorities are still investigating Peter Madoff (and Andrew Madoff before his death) for tax fraud.
David Friehling, Bernard Madoff's tax accountant, who pleaded guilty in a similar case, was apparently assisting with the investigation. In a civil lawsuit filed in October 2009, Trustees Irving Picard and Peter Madoff claim that Peter Madoff deposited $32,146 and withdrew more than $16 million from his Madoff accounts.; Andrew deposited nearly $1 million and withdrew $17 million; and Mark deposited $745,482 and withdrew $18.1 million. He hired his brother Peter Madoff as senior managing director and chief compliance officer, his daughter Shana Madoff as the firm's rules and compliance officer and attorney, and his now-deceased sons Mark and Andrew Madoff as senior managing director and chief compliance officer. Madoff briefly attended Brooklyn Law School but dropped out after his first year to start his own firm, Bernard L. Madoff Investment Securities LLC.
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