View Full Version : Investor Says Cash 'Up in Smoke' After Ex-Nasdaq Chairman's Arrest in 'Ponzi Scheme'

12-12-2008, 07:06 PM
NEW YORK — Investors struggled Friday to understand how a former Nasdaq stock market chairman could hide losses of at least $50 billion in what he allegedly called "a giant Ponzi scheme."

Bernard L. Madoff, 70, was arrested on a securities fraud charge Thursday and released on $10 million bail after federal authorities said he ran a fraudulent investment business separate from his Bernard L. Madoff Investment Securities LLC.

Outside those offices Friday, one man who said he had invested with Madoff said everyone who had put money into the firm "has got problems."

"I think at this point it’s all up in smoke," he told a gaggle of reporters. "That’s my personal feelings, but we’ll see."

No one who entered or exited the granite-columned office tower where the firm is housed during lunchtime said they worked for Madoff, and the lone investor who did speak on the condition of anonymity said he was told their offices were closed Friday.

FOXNews.com's calls to the firm were not answered.

Prosecutors allege Madoff ran a secret $17.1 billion investment-advising business that operated separately from his Manhattan securities firm, servicing between 11 and 25 clients.


FYI (http://www.newsmeat.com/fec/bystate_detail.php?zip=10022&last=MADOFF&first=BERNARD)

If the returns were too good to be true then you'd think the savvy investor would smell a rat.