Who is bernie made off

After graduating from high school in , Madoff headed to the University of Alabama, where he stayed for one year before transferring to Hofstra University in Long Island. In , he married his high school sweetheart, Ruth, who was attending nearby Queens College.

With the help of Madoff's father-in-law, a retired CPA, the business attracted investors through word of mouth and amassed an impressive client list, including celebrities such as Spielberg, Kevin Bacon and Kyra Sedgwick. Madoff Investment Securities grew famous for its reliable annual returns of 10 percent or more, and by the end of the s, his firm was handling more than 5 percent of the trading volume on the New York Stock Exchange.

The success of Madoff Securities was in part due to a willingness to adapt to changing times; the firm was among the earliest to use computer technology for trading, helping to give rise to the National Association of Securities Dealers Automated Quotations NASDAQ. As the business expanded, Madoff began employing more family members to help with the company. His younger brother, Peter, joined him in the business in and became the firm's chief compliance officer.

Later, Madoff's sons, Andrew and Mark, also worked for the company as traders. Peter's daughter, Shana, became a rules-compliance lawyer for the trading division of her uncle's firm, and his son, Roger, joined the firm before his death in However, Madoff became famous for a very different reason on December 11, The day before, the investor informed his sons that he planned to give out several million dollars in bonuses earlier than scheduled, and they demanded to know where the money was coming from.

Madoff then admitted that a branch of his firm was actually an elaborate Ponzi scheme. Madoff's sons reported their father to federal authorities, and the next day Madoff was arrested and charged with securities fraud.

On June 29, , U. District Court Judge Denny Chin sentenced Madoff to years in prison — the maximum possible prison sentence for the year-old defendant.

Madoff was sent to Butner Federal Correction Complex in North Carolina to serve his sentence, while efforts commenced to reimburse investors through the sale of his assets.

As a well-respected financier, Madoff convinced thousands of investors to hand over their savings, falsely promising consistent profits in return. He was caught in December and charged with 11 counts of fraud, money laundering, perjury, and theft. Ponzi schemes draw investors in by guaranteeing unusually high returns. Ponzi schemes are run by a central operator, who uses the money from new, incoming investors to pay off the promised returns to older ones.

This makes the operation seem profitable and legitimate, even though no actual profit is being made. Meanwhile, the person behind the scheme pockets the extra money or uses it to expand the operation.

To avoid having too many investors reclaim their "profits," Ponzi schemes encourage them to stay in the game and earn even more money. Then all they need to do is tell investors how much they are making periodically, without actually providing any real returns.

Ponzi schemes aren't usually very sustainable. The setup eventually falls apart after the operator takes the remaining investment money and runs, new investors become harder to find — meaning the flow of cash dies out — and too many current investors begin to pull out and request their returns.

Another reason Madoff managed to fly under the radar for so long despite multiple reports to the SEC about suspicions of a Ponzi scheme is because Madoff was a well-versed and active member of the financial industry. He started his own market-maker firm in and helped launch the Nasdaq stock market. He sat on the board of National Association of Securities Dealers and advised the Securities and Exchange Commission on trading securities.

It was easy to believe the industry veteran knew exactly what he was doing. Though, that's hardly any consolation for his thousands of investors, the full list of whom can be found with WSJ here. The year sentence — more symbolic than literal — was followed by other convictions related to Madoff's scheme. So, you know, I've served. I've served 11 years already, and, quite frankly, I've suffered through it.

Judge Denny Chin denied Mr Madoff's request, noting many victims were still suffering due to their financial losses. Madoff was never truly remorseful, and that he was only sorry that his life as he knew it was collapsing around him," he wrote. At least two investors with Mr Madoff took their own lives after their losses.

His son Mark also killed himself on the second anniversary of his father's arrest. His other son, Andrew, died of cancer in Mr Madoff is survived by his wife, Ruth Madoff, who maintained she was unaware of the scheme and was never charged. Fraudster Madoff gets years. Money launderers 'prey on generation Covid'. Image source, EPA.