Former Nasdaq chairman charged with $50 billion fraud

The U.S. Department of Justice and the Securities and Exchange Commission today charged former Nasdaq Chairman Bernard L. Madoff and his investment firm, Bernard L. Madoff Investment Securities LLC, with securities fraud for a multi-billion dollar Ponzi scheme that he perpetrated on advisory clients of his firm.

According to regulatory filings, the firm had more than $17 billion in assets under management and it appears that virtually all assets of the advisory business are missing. The SEC is seeking emergency relief for investors, including an asset freeze and the appointment of a receiver for the firm.

Both complaints allege that Madoff informed two senior employees that his investment advisory business was a fraud. Madoff told them that he was "finished," that he had "absolutely nothing," that "it's all just one big lie," and that it was "basically, a giant Ponzi scheme." According to the SEC, Madoff admitted in this conversation that the firm was insolvent and had been for years, and that he estimated the losses from this fraud were at least $50 billion.

Madoff served as vice chairman of the NASD, a member of its board of governors and chairman of its New York region. He was also a member of Nasdaq Stock Market's board of governors and its executive committee and served as chairman of its trading committee.

HYPERLINK "Former%20Nasdaq%20chairman%20charged%20$50%20billion%20fraud"Read the SEC’s complaint

HYPERLINK "" Read the DoJ complaint

About the Author
Andrew Wilkinson

Andrew is a seasoned trader and commentator of global financial markets. He worked for several London-based banks trading cash and derivatives before moving to the U.S. to attend graduate school. Andrew re-joins Interactive Brokers following a two-year stretch at a major Wall Street broker-dealer as their Chief Economic Strategist. His coverage of stocks, options, futures, forex and bonds regularly surfaces in global media, and over the last several years Andrew has made many TV appearances on Bloomberg, BBC, CNBC and BNN and Yahoo Finance.

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