Former NASDAQ chairman Bernard L. Madoff pleaded guilty in March 2009 to 11 felonies and massive fraud. Prosecutors estimate the size of the fraud to be $64.8 billion, the largest financial fraud in U.S. history, based on the amounts in the accounts of Madoff’s 4,800 clients. Madoff remains locked in a lower Manhattan jail cell pending his June 29th sentencing. The 71-year-old faces 150 years behind bars as well as restitution of up to $170 billion.

Madoff ran the wealthy investment arm of his business, Bernard L. Madoff Investment Securities LLC, secretly and separately from the main trading and market-making floor of his offices, with records kept “under lock and key.”

Madoff admitted to having run a “Ponzi” scheme. For years Madoff and his investment firm had been paying returns to certain investors out of the principal received from other, different investors. Client statements in stock holdings were fictitious - no stocks were ever purchased since the scheme began in the 1980s.

What is a Ponzi Scheme? A Ponzi scheme, named after the swindler Charles Ponzi, is a fraudulent investment operation that pays abnormally high returns to investors paid from money put into the scheme by subsequent investors, rather from real profits generated by share trading. Madoff’s fraud is far greater than past Ponzi schemes and easily the greatest swindle pulled off by one man.

The FBI alleges that Madoff “paid certain investors purported returns on investment with the principal received from other, different investors, which resulted in losses of billions of dollars.”

Some investors, journalists, and economists have questioned Madoff’s statement that he alone is responsible for the large-scale operation. Investigators are looking to determine if there were others involved in the scheme.

Professional Financial & Investment Evaluations

If you are concerned, or have suspicions about an investment deal, you can determine its accuracy by hiring a professional financial evaluator.

Mr. Al Golden specializes in evaluating investments to protect businesses and individuals against possible frauds. He also provides CFO and Controller Services, forensic accounting, comprehensive business valuation, and forensic accounting. He is a Certified Public Accountant (CPA), Certified Valuation Analyst (CVA), a Diplomat of the American Board of Forensic Accounting (DABFA), Certified in Financial Forensics (CFF), and is a member of the American Institute of Certified Public Accountants, the National Association of Certified Valuation Analysts, and the American College of Forensic Examiners.

A.M. Golden Accountancy Corporation offers a free initial consultation - To speak with Mr. Golden immediately, please call his direct line by dialing (760) 444-1913.  If you’d prefer, you may also send an email: al@amgolden.com