The SEC has a special name for getting screwed with your pants on by someone you trust: affinity fraud! The Madoff scandal is a textbook example of affinity fraud, as Bernie exploited a huge number of religious ties in order to build his giant Ponzi scheme. Madoff scammed the Jewish community big-time, and many Jewish charities and universities suffered big losses as a result. The good news is that the Torah reserves “a special circle in Hell” for people who steal from charities. I assume most religious texts do, actually, so that’s probably a lesson for future affinity fraudsters.
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Rene-Thierry Magon de la Villehuchet, the 65-year-old founder of a hedge fund in NYC, committed suicide in his office today. His fund, Access International Investors, had lost over $1.4 billion in the Madoff scandal. According to Bloomberg, “de la Villehuchet was found ‘with his feet propped up on his desk, a trash pail nearby to collect blood,’ and no sign of a second person. De la Villehuchet had ‘multiple stab wounds’ to his arms and wrists, and a box-cutter and pills were found nearby.”
AP - The list of investors who say they were duped in one of Wall Street’s biggest Ponzi schemes is growing, snaring some of the world’s biggest banking institutions and hedge funds, the super rich and the famous, pensioners and charities. Now much poorer investors include Steven Spielberg, New Jersey Senator Frank Lautenberg, the owner of the Mets and the former owner of the Eagles.
Leading Wall St. investor Bernie Madoff was charged in a $50 billion securities fraud today. He is to be released tonight on $10 million bond. The complaint charges that Madoff told colleagues that his investment company was “all just one big lie” that was “basically, a giant Ponzi scheme”