Do you want to know exactly how Madoff pulled off the scheme so easily?
Here is his strategy:
a. He enticed charities, which are organizations, who would be less hostile if he were exposed, unlike individual investors who lost their all in all, who would be outraged to violence. To fortify his concealed fraud and theft, he got into the directorate of the particular charity, or one of his family did, so that if anything was brought up, he’d get ear of it and either silence it or cover it up specially.
b. To create the appearance of exclusivity and class, he was very selective of the investors who wanted to give him money, rejecting certain ones, so that whatever invester was accepted, would be grateful and less likely to look deep down.
c. He’d screen carefully every person who wanted to place funds with him – To investigate the specific investor – He’d hire investigators to go into every detail of the potential investor’s business activity, credit background, marital involvements etc and if there were indications of tax fraud or divorce fraud, he’d take them in as investors. He wanted to see if the applicant’s financial activities were such that the money he was giving to Madoff was concealed tax fraud, that plenty of monied people have, and they seek places where the monies can remain concealed in a larger fund composed of many investors. Madoff knew that if the fraud ever was found out, these investors with shady assets that the IRS would immediately check into if these persons names surfaced as persons with claims against Madoff, then these people would just go away and take their loss rather than face criminal or civil charges by the IRS. so Madoff had a ready made gag over the mouths of many, many individual investors who he ripped off, knowing they would never open their mouths to regulators to protect themselves.
And as for the alleged “innocence” of his two sons. They knew plenty about it. Madoff didn’t want their lives destroyed by his evil, so it was agreed that when the matter was about to bust out, the sons would play the role of heroes unveiling Madoff so they would avoid prosecution.
Real nice family, isn’t it?
Tagged with: appearance • assets • business activity • charities • charity • civil charges • credit background • exclusivity • gag • individual investors • innocence • investigators • irs • madoff • monies • mouths • regulators • silence • tax fraud • violence
Filed under: Research and Tools
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You give Madoff too much credit.
Like individuals, charities have money to invest too and, frankly, they have more money than any one person does. The oversight of the charity varies wildly and one voice pointing out that this deal smells is likely to get out voted by the rest of the board. This makes the charity a desirable "investor" but not necessarily one that Madoff focused on.
Exclusivity. Yeah, maybe. It’s a pain to cook the books, so fewer "clients" is easier to manage than more of them.
Background checks looking for people who might be hiding something from Uncle Sam (aka shady aka birds of a feather) is not supported. This is a blame the victim mentality and is merely conjecture by analysts (or rumor mill by Madoff’s lawyers). The only sin many of these people had was greed. These are NOT people who weren’t reporting their income to the IRS–in fact many are scrambling to see if there is a way to undo their tax returns for past years an remove the phantom income Madoff said they had made.
no
The name speaks for itself, he is mad, he is off, he made off with a lot of money.
A nice conspiracy theory but the truth is, is that this dude is a JEW, and everyone knows that JEWS are good with money and RICH, so when a rich JEW is offering to manage your money, you jump on the opportunity. but what everyone failed to see is that RICH JEWS, are rich because they steal for their money.
and thats the truth……
YEEE HAAAA
You are just wrong. "C" is absolutely wrong. There’s no evidence that he did any such research.
A and B are wrong too. You’re an idiot.
One word: Greed.
Like that 90 year old guy that had to go back to work…don’t tell me $700,000 was going to be spent before he died!