You might have been watching TV several years ago and been flooded with hundreds of images and reports of a man named Bernie Madoff. You might have been too busy to care, and all you know about him is that he is a Wall Street junkie who got in big trouble.

In these times, those kind of stories are a dime a dozen. It seems like every day there is a new story about a company going down because of dishonesty, or of a Wall Street fat cat going to jail because of dishonest investment practices.

While Madoff might fit the latter description perfectly, there is a lot more to know in this story. The story surrounding his capture and incarceration is an interesting one.

Madoff was the founder of the New York financial firm Bernard L. Madoff Investment Securities LLC. He founded the company all the way back in 1960.

His firm became a large influence in Wall Street and other financial areas. His firm helped develop the ever popular NASDAQ.

According to him, he started his fraudulent activities in 1991. From there, he directed the largest Ponzi scheme ever committed by a single person.

A Ponzi scheme is a financial crime that can yield billions of dollars to those criminals who propose it to investors. Here is how it works:

A financer will promise an investor an amazing return in an investment that they make-usually much higher than any other firm can promise. This will entice the investor to put their money into that company.

The criminal only proposes this great deal to a few inves

tors. The investors eventually get their big payouts, so they are more likely to invest more money into the operation.

Because the investor is seeing so much success, they will usually tell business partners and others about the lucrative offer. This gives the seedy company even more clients to work with, and more importantly, more money.

This is where the shady business starts. As more and more clients are gained, the “returns” that are paid to the investors frequently are not paid from profits of the company, but from the investments of other clients.

This is the system Madoff secretly used in order to give him and his wife billions of dollars in personal funds. He later admitted that he never made investments with his clients’ money; he would always put the money straight into his Tadalis SX personal business account.

As early as 1999, financial analysts began to unravel the clues and they started to see the holes in his business. One such analyst was named Harry Markopolos.

He saw the faults in Bernie’s operations and warned the Securities and Exchange Commission that it was a scheme. He warned several other American commissions about the criminal practices, but none would listen to him.

The dishonest practice was actually ended by Bernie himself. In December 2008, some of his sons were confused at how his business worked so smoothly without any problems
They asked him to explain himself, and Madoff eventually broke down and confessed his crimes.

The next day the FBI came to his house and arrested him on charges of security fraud. He posted billions of dollars in bail and remained under house arrest in his Upper East Side apartment until March of 2009.

At his criminal trial, Bernie’s judge demanded that he forfeit $170 billion and return it. He plead guilty to 11 criminal charges, including several different counts of fraud and money laundering.

Several months later, he was given his prison sentence. He was sentenced to 150 years in prison, the maximum sentence he could have received. He was given no parole.

He is currently being held in the Federal Corrections Institution Butner Medium, which is located in Butner, North Carolina. His projected release date is 2159, but his sentence is basically a life sentence because he is 72 years old.

This story goes to show that hardened, evil criminals can be those who wear white shirts and ties and have a high social status. Hopefully those who are in the same profession as this criminal will learn that crime doesn’t pay, even if that pay-off could be billions of dollars.

Author Bio: Jack R. Landry has worked in financial services for the last 12 years and written hundreds of articles about investing and Optioneer buying propecia Trading.

Contact Info:
Jack R. Landry
JackRLandry@gmail.com
http://www.OptioneerTrading.com

Category: Finance/Personal Cialis Finance
Keywords: Optioneer Trading