Nowadays, it is difficult to deceive businessmen, and ordinary people can be dragged into a dubious deal. But several decades ago, financial pyramids were created very successfully, because of which millions of people suffered. Some lost only part of their savings, while others lost a fortune. A striking example of such a devastating scheme is the scam of Bernard Madoff. She affected not only American society, but also the largest foreign companies.
Biographical data
Probably, many heard that there was such a swindler Bernard Madoff. Who is this, where does he come from and where did he study? He was born and raised in a Jewish family. In the late 50s of the last century, he graduated from high school, after which he decided to graduate at Hofstra College, which is located in New York. At the end of his studies, he received the status of a bachelor in politics. In his student years, Madoff did not lose time and worked part time in several places. As a result, he collected a sum of five thousand dollars, which was used to create his own company called "Madoff Investment Securities". Later, when things went well, the businessman invited his brother Peter to work together, and then two nephews and two of his sons.
What did Madoff do?
Bernard Madoff participated in the creation and operation of one of the American stock exchanges - NASDAQ. Its main task was the purchase and sale of shares, various securities, which should have been profitable for investors.
Interestingly, the Madoff company was one of the 25 largest participants in the trading operations of this exchange. In addition, he is rightfully considered the pioneer of electronic bidding. After all, the first to transfer the entire workflow to electronic mode was Bernard Madoff. Who is he, if not an innovator? After him, other companies gradually began to apply computerization.
Career takeoff
In the 90s, the company of a successful merchant noticeably began to go up. At this time, he managed to take the post of chairman of the board of directors of the exchange, and also headed the board of directors (SD) of the hedge fund Madoff Securities International, which was founded in 1983. Madoff’s high posts do not end there - in 1985 he participated in the foundation and was a member of the Board of Directors of International Securities Clearing. The latter was known for its financial clearing operations, settlements between firms and even countries on a non-cash basis.
Charity
In addition to commerce, Bernard Madoff was involved in charity work. He stepped on this path after one of his nephews died of leukemia in the early 2000s. Since then, Madoff has often donated decent amounts to cancer research. Together with his legal wife, the businessman founded his own foundation, which allocated donations to various Jewish charity events, events, educational institutions, theaters, etc.
Considerable amounts were invested in the election campaigns of some American politicians. So, for various reasons, Bernard Madoff financially supported the representatives of the Democratic Party. In addition, he led the treasury of the board of attorneys at the Yeshiva University Business School.
World famous scam
In the early 2000s, the con man Bernard Madoff became known throughout the world, the pyramid of which is considered the largest in history. According to statistics, there are up to three million people affected, and several hundred financial organizations. In total, the damage was estimated at almost 65 billion dollars.
How did it all start? The Maidoff Investment Securities Fund was reliable and profitable with respect to investments, since its investors received a decent and stable profit - about 13 percent per year. The fund’s clients included both private individuals and various organizations, banking institutions, corporations, etc. At that time, Madoff’s company, according to experts, was considered one of the best market makers in the stock market, so no one had any suspicions.
The revelation came in 2008 when Madoff admitted to his sons that his investment fund was a huge lie. They all told the authorities, and soon the founder of the scam was arrested. As it turned out, the investments entrusted to him have not been used for their intended purpose for the past thirteen years. And the police found out that the fund did not make transactions on the exchange at all, since there is no data on them anywhere. Also, the request of large investors to return the invested funds in the amount of seven billion dollars led to the collapse of the entire scheme, but such money was not in the fund.
The businessman was accused of creating the financial pyramid in 2008, and the following year, Bernard Madoff was sentenced by the court to 150 years in prison. The list of indictments included perjury, money laundering, fraud, etc.
Many believe that the businessman had accomplices, since it is not possible for one to do such a thing.