Today is the deadline for indicting the alleged mastermind of the biggest Ponzi scheme of all time, Mr. Bernard Madoff. Some investers have petitioned a bankruptcy court to extend a deadline for filing claims.
Madoff was arrested on one count of securities fraud in mid-December of last year. His firm, Bernard L. Madoff Investment Securities LLC, was known for the business of market making, or being the middleman between buyers and sellers of shares. Madoff had an investment advisory business that managed money for several high-net-worth individuals, hedge funds and more.
According to a complaint made by the FBI against Madoff, his business was a huge Ponzi scheme. The FBI was quoted as saying that Madoff deceived investors by operating a securities business in which he traded and lost investor money, then paid investors purported returns on investment with the principal received from other investors. The losses are in the BILLIONS of dollars.
Madoff’s lawyers have already agreed to a partial judgment in the civil lawsuit the Securities and Exchange Commission (SEC) filed against him on December 11. According to the SEC, a partial judgment would impose a permenent injunction and continue relief previously obtained by the agency in an earlier injunction order on December 18. Madoff agreed to the judgment without admitting or denying allegations in the lawsuit. The SEC said in a press release that the amount of penalties imposed on Madoff would be decided at a later date.
The Legal Examiner and our Affiliate Network strive to be the place you look to for news, context, and more, wherever your life intersects with the law.