$50 billion fraud rocks the wall street. But this $50 billion is a rough estimate. No one knows how much deep is the problem. It is yet another blow to the spiraling economic slowdown. The figure $50 billion looks like a plausible figure. Courtesy to Mr. Bernard L. Madoff. Everyone is surprised how this guy worked his magic for decades. But some guys claim they already questioned Mr. Madoff for his nonparallel skill of steady returns,his vague investment strategy and the accounting firms that audited his balance sheets. Now tens of thousands of investors ranging from a gray-haired grandmother to a charity, some families believe to have lost all their savings. The effect of this scam is from serious to surprising. Some investor said the returns were just amazing. Mr. Madoff promised of realistic return of 10 per cent a year - which was unrealistically steady. They trusted this guy for decades because whenever they wanted money back they always got their check in a few days. Nonetheless, Madoff was a former NASDAQ chairman.
Mr. Madoff’s security firm, Bernard L. Madoff Investment Securities, ran a scheme, a type of massive fraud in which earlier investors are paid off with money raised from later victims. This scheme ran until no money can be raised from this economic turmoil and the scheme collapses. End of each quarter, Mr. Madoff's stock holding, which he disclosed with security and exchange commission, appeared to be very small to support the size of the fund he claimed to hold. But some this discrepancies were explained by the promoters of Mr. Madoff holding as a strategy of the Mr. Madoff of selling all the securities and keeping the cash.
According to civil and criminal complaints, Madoff confessed he had been cheating since decades, and he estimated his total losses from the fraud may have been $50 billion.
Now federal authorities took over the control of his firm and started probing on the case.
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