Bernard Lawrence "Bernie" Madoff (pronounced /ˈmeɪdɒf/ ;[3] born April 29, 1938) is an incarcerated former American stock broker , investment advisor , non-executive chairman of the NASDAQ stock market, and the admitted operator of what has been described as the largest Ponzi scheme in history. In March 2009, Madoff pleaded guilty to 11 federal crimes and admitted to turning his wealth management business into a massive Ponzi scheme that defrauded thousands of investors of billions of dollars. Madoff said he began the Ponzi scheme in the early 1990s. However, federal investigators believe the fraud began as early as the 1980s, and that the investment operation may never have been legitimate.[4] The amount missing from client accounts, including fabricated gains, was almost $65 billion.[5] The court-appointed trustee estimated actual losses to investors of $18 billion.[4] On June 29, 2009, he was sentenced to 150 years in prison, the maximum allowed.[6] [7] Madoff founded the Wall Street firm Bernard L . Madoff Investment Securities LLC in 1960, and was its chairman until his arrest on December 11, 2008.[8] [9] The firm was one of the top market maker businesses on Wall Street,[10] which bypassed "specialist" firms by directly executing orders over the counter from retail brokers.[11] On December 10, 2008, Madoff's sons told authorities that their father had confessed to them that the asset management unit of his firm was a massive Ponzi scheme, and quoted him as describing it as "one big lie."[12] [13] [14] The following day, FBI agents arrested Madoff and charged him with one count of securities fraud . The U.S. Securities and Exchange Commission (SEC) had previously conducted investigations into Madoff's business practices, but did not uncover the massive fraud.[10]
Personal life
Madoff was born into a Jewish home in the New York City borough of Queens , on April 29, 1938, and is the son of Ralph and Sylvia (née Muntner) Madoff. Ralph Madoff was a plumber before becoming a stockbroker . His grandparents came to the United States from Poland , Romania and Austria . Madoff graduated from Far Rockaway High School in 1956, attended the University of Alabama for one year, where he became a brother of the Tau Chapter of the Sigma Alpha Mu fraternity , then transferred to and graduated from Hofstra College in 1960 with a B.A. in political science . The following year, he attended Brooklyn Law School , but did not continue.
In 1959, Madoff married Ruth Alpern, who graduated from Queens College and worked in the stock market in Manhattan . She later worked in Madoff's firm, and founded the Madoff Charitable Foundation. Several family members worked for Madoff. His younger brother, Peter, an attorney, was Senior Managing Director and Chief Compliance Officer, and Peter's daughter, Shana, also an attorney, was the compliance attorney. Madoff's sons, Mark and Andrew, worked in the trading section, along with Charles Weiner, Madoff's nephew.
Madoff lived in Roslyn, New York , in a ranch house through the 1970s and after 1980 owned an ocean-front residence in Montauk . His primary residence was on Manhattan 's Upper East Side , and he was listed as chairman of the building's co-op board. He also owned a home in France and a mansion in Palm Beach, Florida , where he was a member of the Palm Beach Country Club. Madoff owned a 55-foot (17 m) sportfishing yacht named Bull, All three homes were auctioned by the U.S. Marshals Service in September 2009.
According to a March 13, 2009, filing by Madoff, he and his wife were worth up to $126 million, plus an estimated $700 million for the value of his business interest in Bernard L. Madoff Investment Securities LLC. Other major assets included securities ($45 million), cash ($17 million), half-interest in BLM Air Charter ($12 million), a 2006 Leopard yacht ($7 million), jewelry ($2.6 million), Manhattan apartment ($7 million), Montauk home ($3 million), Palm Beach home ($11 million), Cap d' Antibes , France property ($1 million), and furniture, household goods, and art ($9.9 million).
Madoff was a prominent philanthropist , who served on boards of nonprofit institutions — many of which entrusted his firm with their endowments . The collapse and freeze of his personal assets and those of his firm affected businesses, charities, and foundations around the world, including the Chais Family Foundation , the Robert I. Lappin Charitable Foundation , the Picower Foundation , and the JEHT Foundation which were forced to close. Madoff donated approximately $6 million to lymphoma research after his son Andrew was diagnosed with the disease. He and his wife gave over $230,000 to political causes since 1991, with the bulk (88%) going to the Democratic Party , and 12% to the Republican Party .
Madoff served as the Chairman of the Board of Directors of the Sy Syms School of Business at Yeshiva University , and as Treasurer of its Board of Trustees . He resigned his position at Yeshiva University after his arrest. Madoff also served on the Board of New York City Center , a member of New York City's Cultural Institutions Group (CIG). He served on the executive council of the Wall Street division of the UJA Foundation of New York which declined to invest funds with him because of the conflict of interest.
Madoff undertook charity work for the Gift of Life Bone Marrow Foundation and made philanthropic gifts through The Madoff Family Foundation, a $19 million private foundation, which he managed along with his wife. They donated money to hospitals and theaters. The foundation has also contributed to many educational, cultural, and health charities, including those later forced to close because of Madoff's fraud. After Madoff's arrest, the assets of the Madoff Family Foundation were frozen by a federal court.
Mark Madoff owed his parents $22 million, and Andrew Madoff owes $9.5 million. There were two loans in 2008 from Bernard Madoff to Andrew Madoff: $4.3 million on October 6, and $250,000 on September 21. Andrew owns a Manhattan apartment and a home in Greenwich, Connecticut , as did Mark prior to his death on the second anniversary of his father's arrest.
Following a divorce from his first wife in 2000, Mark withdrew money from an account. Both sons used outside investment firms to run their own private philanthropic foundations. In March 2003, Andrew was diagnosed with mantle cell lymphoma and eventually returned to work. He became chairman of the Lymphoma Research Foundation in January 2008, but resigned shortly after his father's arrest.
Peter and Andrew Madoff remain the targets of a tax fraud investigation by federal prosecutors, according to The Wall Street Journal . David Friehling , Bernard Madoff's tax accountant, who pleaded guilty in a related case, is reportedly assisting the investigation. According to a civil lawsuit filed in October 2009, trustee Irving Picard alleges that Peter Madoff deposited $32,146 into his Madoff accounts and withdrew over $16 million; Andrew Madoff deposited almost $1 million into his accounts and withdrew $17 million; Mark Madoff deposited $745,482 and withdrew $18.1 million.
Sheryl Weinstein, former chief financial officer of Hadassah , disclosed in a book written to recoup her investment losses that she and Madoff had an affair more than 20 years ago. As of 1997, when Weinstein left, Hadassah had invested a total of $40 million. By the end of 2008, Hadassah had withdrawn $140 million from an account valued at $90 million. At the victim impact sentencing hearing, Weinstein testified, calling him a "beast".
On the morning of December 11, 2010, exactly two years after Bernard's arrest, his son, Mark Madoff, was found dead in his New York City apartment. The initial ruling is a suicide .
Early career
Madoff founded the Wall Street firm Bernard L. Madoff Investment Securities LLC in 1960. He was its chairman until his arrest on December 11, 2008.
The firm started as a penny stock trader with $5,000 ($37,000 in current dollar terms) that Madoff earned from working as a lifeguard and sprinkler installer.
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Bernard Lawrence " Bernie" Madoff (pronounced /ˈmeɪdɒf/ born April 29, 1938) is an incarcerated former American stock broker, investment advisor, non-executive chairman of Read the rest