Business | Investment
Madoff's alleged $50b fraud hits other investors
Investors scrambled to assess potential losses from an alleged $50 billion [Dh183.5 billion] fraud by Bernard Madoff as legal experts said his arrest may only be the beginning of the legal saga triggered by the Wall Street veteran.
- Reuters
- Published: 23:45 December 13, 2008
New York: Investors scrambled to assess potential losses from an alleged $50 billion [Dh183.5 billion] fraud by Bernard Madoff as legal experts said his arrest may only be the beginning of the legal saga triggered by the Wall Street veteran.
Prosecutors and regulators accused the 70-year-old, who was chairman of the Nasdaq Stock Market in the early 1990s, of masterminding a fraud of epic proportions through his investment advisory business, which managed at least one hedge fund. Hundreds of people, investing with him through the firm's clients, entrusted Madoff with billions of dollars, industry experts said.
"Madoff's investors included captains of industry, corporations - some of which are publicly traded - that used Madoff almost as a high-yielding cash management account, endowments, universities, foundations and, importantly, many high-profile funds of funds," said Douglas Kass, who heads hedge fund Seabreeze Partners Management.
What do you think of this incident? Do you easily trust people with your money? If not, what precautions do you take before making an investment?
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