This holiday season, many hedge funds, families, and charities have been hit hard by the Bernie Madoff scandal. Many innocent victims who never heard of Bernie Madoff, entrusted their life savings to investment managers, who in turn put their hedge fund in the greedy scumbags hand.
As the saying goes, if it’s to good to be true, it probably is. Each year many investors, were earning 10% from Madoff’s slush fund. The big question everyone is asking is, how in the world did the SEC not notice what was going on behind closed doors?
One politician hit hard, was New Jersey Sen. Loretta Weinberg whose nest egg had grown to about $1.3 million, before investments with disgraced Wall Street investor Bernard Madoff wiped her out. The 73-year-old grandmother believed she was financially secure until recently, when an accountant phoned a relative to say the Weinberg family’s investments – including the senator’s and those of many in her family – were now worth nothing. YIKES!!!
One CEO, a French hedge fund founder, distraught over the losses, killed himself yesterday in an apparent suicide. Rene-Thierry Magon de la Villehuchet, founder of Access International Advisors, had just confessed the investment and probable billion-dollar loss to clients, and had spent days frantically trying to figure out ways to recover his losses. Unfortunately, he couldn’t handle the stress and chose to end his life. Very sad.
The Securities and Exchange Commission plans to probe the relationship between the niece of financier Bernard L. Madoff and a former official at the agency, according to a report in The Wall Street Journal on Wednesday. The probe comes on the heels of an admission by SEC Chairman Christopher Cox that the agency was aware of numerous red flags raised over Bernard L. Madoff Investment Securities LLC, the focus of an alleged $50 billion Ponzi scheme.
The agency has launched an investigation of its oversight into the firm. In a statement released Tuesday, the SEC chairman said its initial findings were “deeply troubling,” indicating that those red flags going back to at least 1999 were repeatedly brought to the attention of the SEC, without any action being taken.
Last year, Madoff’s niece, Shana Madoff, married former SEC attorney Eric Swanson, who worked at the SEC for 10 years. Neither person was named in the statement as a target of the probe.
There is NO WAY IN THE WORLD, Madoff could have pulled this off without inside help. It’s IMPOSSIBLE!!! Why did the SEC turn a blind eye for the last ten years? The greed and corruption on Wall Street is mind boggling. Personally, I think I will stick to my Etrade account and invest in Google stock.