Infotech

Con artist Bernard Madoff died in prison



Posted on Apr 14, 2021, 4:52 PMUpdated Apr 14, 2021, 5:45 PM

Bernard Lawrence Madoff died in prison of natural causes according to the Associated Press. His request for early release was refused by Donald Trump. At 82, the financier is the author of the largest financial scam in history, a scam that caused nearly $ 20 billion in losses for investors.

The Madoff Victims Fund has recovered more than 80% of the sums lost to the benefit of nearly 37,000 people in 125 countries and from all walks of life. American justice has decided that the “winners” will compensate the losers. The bona fide investors who had invested in Bernard Madoff without knowing the fraudulent nature of his Ponzi scheme must return the profits they received to compensate the many victims of this massive scam.

Bernard Madoff had implemented a vast Ponzi scheme for years. Boasting his talent for trading in derivatives, he promised regular and significant returns (11% per year). To pay their interest to his clients he drew from the accounts of other investors. A system of communicating vessels which made it possible to maintain the illusion of regular performance whatever the market conditions.

A still very popular scam

Sentenced to 150 years of imprisonment, the number 61727-054 of the prison of Butner in North Carolina, takes with him some of his secrets. Isolated, he no longer received any visits from members of his family. Its followers continued to be rife in the United States and the rest of the world. In a decade the Ponzi schemes have caused $ 60 billion in losses in the United States alone.

More than 800 of these financial scams resulted in 8,000 years in prison for their instigators. This financial scam remains very popular given its simplicity and the credulity of some investors. In 2020, the losses caused by the Ponzi schemes reached one billion dollars in the United States. With the disruptions resulting from the Covid-19 crisis, the American authorities had difficulty in unmasking the perpetrators of the frauds.

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