Bernie Madoff

"Madoff" redirects here. For other people with the same surname, see Madoff (surname). For the TV miniseries, see Madoff (miniseries) and Madoff: The Monster of Wall Street.

Bernie Madoff
Madoff in a 2009 mugshot
Born
Bernard Lawrence Madoff

(1938-04-29)April 29, 1938
New York City, New York, U.S.
DiedApril 14, 2021(2021-04-14) (aged 82)
Butner, North Carolina, U.S.
Education
Occupations
EmployerBernard L. Madoff Investment Securities[1] (founder)
Known forBeing the chairman of Nasdaq and the Madoff investment scandal
Criminal statusDeceased
Spouse
​
(m. 1959)​
Children
Conviction(s)March 12, 2009 (pleaded guilty)
Criminal chargeSecurities fraud, investment advisor fraud, mail fraud, wire fraud, money laundering, false statements, perjury, making false filings with the SEC, theft from an employee benefit plan
Penalty150 years imprisonment, forfeiture of US$17.179 billion, lifetime ban from securities industry
Date apprehended
December 11, 2008

Bernard Lawrence Madoff (/ˈmeɪdɔːf/ MAY-dawf;[2] April 29, 1938 – April 14, 2021) was an American financial criminal and financier who was the admitted mastermind of the largest known Ponzi scheme in history, worth an estimated $65 billion.[3][4] He was at one time chairman of the Nasdaq stock exchange.[5] Madoff's firm had two basic units: a stock brokerage and an asset management business; the Ponzi scheme was centered in the asset management business.

Madoff founded a penny stock brokerage in 1960, which eventually grew into Bernard L. Madoff Investment Securities.[6] He served as the company's chairman until his arrest on December 11, 2008.[7][8] That year, the firm was the 6th-largest market maker in S&P 500 stocks.[9] While the stock brokerage part of the business had a public profile, Madoff tried to keep his asset management business low profile and exclusive.

At the firm, he employed his brother Peter Madoff as senior managing director and chief compliance officer, Peter's daughter Shana Madoff as the firm's rules and compliance officer and attorney, and his now-deceased sons Mark Madoff and Andrew Madoff. Peter was sentenced to 10 years in prison in 2012,[10] and Mark hanged himself in 2010, exactly two years after his father's arrest.[11][12][13][14] Andrew died of lymphoma on September 3, 2014.[15]

On December 10, 2008, Madoff's sons Mark and Andrew 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 saying that it was "one big lie".[16][17][18] The following day, agents from the Federal Bureau of Investigation arrested Madoff and charged him with one count of securities fraud. The U.S. Securities and Exchange Commission (SEC) had previously conducted multiple investigations into his business practices but had not uncovered the massive fraud.[9] On March 12, 2009, Madoff pleaded guilty to 11 federal felonies and admitted to turning his wealth management business into a massive Ponzi scheme.

The Madoff investment scandal defrauded thousands of investors of billions of dollars. Madoff said that he began the Ponzi scheme in the early 1990s, but an ex-trader admitted in court to faking records for Madoff since the early 1970s.[19][20][21] Those charged with recovering the missing money believe that the investment operation may never have been legitimate.[22][23] The amount missing from client accounts was almost $65 billion, including fabricated gains.[24]

The Securities Investor Protection Corporation (SIPC) trustee estimated actual direct losses to investors of $18 billion,[22] of which $14.418 billion has been recovered and returned, while the search for additional funds continues.[25] On June 29, 2009, Madoff was sentenced to 150 years in prison, the maximum sentence allowed.[26][27][28][29] On April 14, 2021, he died at the Federal Medical Center, Butner, in North Carolina, from chronic kidney disease.[30][31][32][33]

  1. ^ "Bernard L. Madoff Investment Securities, LLC (BMIS)". madoffinvestmentsecurities.com. February 26, 2007. Retrieved April 3, 2023.
  2. ^ "Voice of America pronunciation guide". Voice of America. Archived from the original on July 18, 2011.
  3. ^ Graybow, Martha (March 11, 2009). "US Prosecutors updated the size of Madoff's scheme from $50 billion to $64 billion". Reuters. Archived from the original on July 7, 2009.
  4. ^ "Wife Says She and Madoff Tried Suicide". The New York Times. Reuters. October 26, 2011. Archived from the original on July 8, 2018.
  5. ^ "Ex-Nasdaq chair arrested for securities fraud". CNN. December 12, 2008. Archived from the original on October 19, 2013.
  6. ^ Langer, Emily (April 14, 2021). "Bernard Madoff, mastermind of vast Wall Street Ponzi scheme, dies at 82". The Washington Post. ISSN 0190-8286. Archived from the original on April 14, 2021.
  7. ^ "The Madoff Case: A Timeline". The Wall Street Journal. March 6, 2009. Archived from the original on February 22, 2015.
  8. ^ Henriques, Diana (January 13, 2009). "New Description of Timing on Madoff's Confession". The New York Times. Archived from the original on April 10, 2009.
  9. ^ a b Lieberman, David; Gogoi, Pallavi; Howard, Theresa; McCoy, Kevin; Krantz, Matt (December 15, 2008). "Investors remain amazed over Madoff's sudden downfall". USA Today. Mclean, Virginia: Gannett Company. Archived from the original on December 18, 2008.
  10. ^ "Peter Madoff Sentenced to 10 Years for Role in Ponzi Scheme". NBC News. December 20, 2012. Archived from the original on May 10, 2013.
  11. ^ Cornell, Irene (December 11, 2010). "Officials: Bernie Madoff's Son Mark Madoff Found Dead Of Apparent Suicide In Soho Apartment". CBS News. Archived from the original on July 2, 2018.
  12. ^ Candiotti, Susan (December 11, 2010). "Madoff son found dead of apparent suicide". CNN. Archived from the original on December 12, 2010.
  13. ^ Gardiner, Sean; Rothfeld, Michael; Eder, Steve; Bray, Chad (December 12, 2010). "Madoff's Son Is Found Dead in Apparent Suicide". The Wall Street Journal.
  14. ^ Neumeister, Larry; Hays, Tom (December 13, 2010). "Madoff son's suicide follows battle with trustee". NBC News. Associated Press. Archived from the original on September 23, 2020.
  15. ^ "Bernie Madoff's Surviving Son Andrew Dies of Lymphoma". NBC News. October 31, 2011. Archived from the original on August 9, 2020.
  16. ^ Voreacos, David; Glovin, David (December 13, 2008). "Madoff Confessed $50 Billion Fraud Before FBI Arrest". National Post. Bloomberg News.
  17. ^ "SEC: Complaint SEC against Madoff and BMIS LLC" (PDF). U.S. Securities and Exchange Commission. December 11, 2008. Archived (PDF) from the original on December 17, 2008.
  18. ^ Cite error: The named reference biglie was invoked but never defined (see the help page).
  19. ^ McCool, Grant (November 21, 2011). "Ex-Madoff trader admits faking records since '70s". Reuters.
  20. ^ Rushe, Dominic (November 18, 2011). "Bernard Madoff fraud 'began 20 years earlier than admitted'". The Guardian.
  21. ^ Riley, Charles (October 1, 2012). "Prosecutors: Madoff fraud started in 1970s". CNN.
  22. ^ a b Cite error: The named reference Liquidator was invoked but never defined (see the help page).
  23. ^ Ross, Brian (2015). The Madoff Chronicles. Kingswell. ISBN 9781401310295.
  24. ^ McCool, Grant; Graybow, Martha (March 13, 2009). "Madoff pleads guilty, was jailed for $65 billion fraud". Reuters. Archived from the original on October 1, 2013.
  25. ^ Cite error: The named reference recovery was invoked but never defined (see the help page).
  26. ^ "Bernard Madoff gets 150 years behind bars for fraud scheme". CBC News. June 29, 2009. Archived from the original on July 2, 2009.
  27. ^ Henriques, Diana B. (June 29, 2009). "Madoff Sentenced to 150 Years for Ponzi Scheme". The New York Times. Archived from the original on May 1, 2011.
  28. ^ Smith, Aaron (June 29, 2009). "Madoff sentenced to 150 years". CNN.
  29. ^ Neuman, Scott (June 29, 2009). "Madoff Sentenced To Maximum 150 Years In Prison". NPR.
  30. ^ "AP source: Ponzi schemer Bernie Madoff dies in prison". Associated Press. April 14, 2021. Archived from the original on April 14, 2021.
  31. ^ Cite error: The named reference mastermind was invoked but never defined (see the help page).
  32. ^ "Disgraced financier, Ponzi scheme architect Bernie Madoff dies in prison". The Jerusalem Post. Reuters. April 14, 2021.
  33. ^ Rothfeld, Michael; Baer, Justin (April 14, 2021). "Bernie Madoff Dead at 82; Disgraced Investor Ran Biggest Ponzi Scheme in History". The Wall Street Journal.