Friday, December 12, 2008

Madoff hedges $50 billion fraud

Bernard Madoff former head of the Nasdaq (and currently on the Nasdaq OMX board)and head of Bernard L. Madoff Investment Securities LLC has been arrested today for basically running a giant ponzi scheme.

scheme was ran through Madoff's hedge found which promised people a return in the range of 7.3% to 9% on their investment. Due to their consistent returns this hedge found looked like a smart place for investors to put their money in. what they didn't know was that Madoff was paying off the old investors with the money that the newer investors put in.

at an estimated $50 billion this is one of the biggest fraud cases in history.

even though Madoff's a crook at least when he was caught he didn't deny what he did and is accepting the blame instead of trying to pin it on others.

but give that he is only getting 20 years in jail and a fine of $5 million I think he is getting of a little easy. the years are ok at his age he more then likely wont live to see the end of his jail term but giving the amount of mony he frauded out of people $5 million seems to be such a small fine.

I think the fine should be raised upped.

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