Out and out investment fraud
Bernard Madoff was caught doing a has been called a Ponzi scheme of epic proportions that was run through a hedge fund he ran. In a Ponzi scheme, the scammer uses money from new investors, who are lured with the promise of high or consistent returns, to pay off earlier investors. Then eventully the whole thing collapses (1 ).
Many big money people were caught up in Madoff investment scam s few are Britain's HSBC Holdings PLC, Royal Bank of Scotland Group PLC and Man Group PLC, Spain's Grupo Santander SA, France's BNP Paribas and Japan's Nomura Holdings, real estate magnate Mortimer Zuckerman, the foundation of Nobel laureate Elie Wiesel, and a charity of movie director Steven Spielberg. All in all the scam cost investors $50 billion dollars (2 ).
Madoff is a former Nasdaq chairman who gave thousands of dollars to the power in the US Senate Charles Rangel (D, NY), Charles Schumer (D, NY), Frank Lautenberg (D, NJ) Madoff also runs s non profit with Sen Lautenberg (3 ).
On March 12 2009 Madoff pleaded guilty to defrauding investors. Securities Investor Protection Corp. is now trying to locate Madoff assets to compensate Madoffs victims so far they have located 1 billion of the 65 billion investors lost(4 ).
Another well connected Fraudster Hassan Nemazee has connections in High places like being a fund raiser for Barack Obama, Hillary Clinton. Nemazee was charged with defrauding Bank of America, HSBC and Citigroup Inc out of more than 290 million in loan proceeds. He falsified documents and signatures to obtain loans. He used the proceed to make donations to candidates (5 ).