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Bernard Madoff's Investment Fund 'never Traded'

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http://www.telegraph.co.uk/finance/finance...ver-traded.html

The bizarre allegation – the latest in a series of twists and turns since the 70-year-old fund manager was arrested for an alleged $50bn (£34bn) fraud on December 11 – comes after the detailed examination of the trading records of Mr Madoff's broker-dealer, Bernard L. Madoff Investment Securities (BLMIS).

Herb Perone, a spokesman for the Financial Industry Regulatory Authority( FINRA) said that its examinations "showed no evidence of trading on behalf of the investment adviser, no evidence of any customer statements being generated by the broker-dealer."

FINRA, which is Wall Street's self-funded financial regulator, and its predecessor the National Association of Securities Dealers, have routinely assessed the trading records of BLMIS every two years since the company's inception in 1960.

The revelation suggests that Mr Madoff was either using a third-party firm to process the trades for the fund – something which FINRA considers to be unlikely – or that he was not executing any trades at all.

The latter would add weight to the allegation that the fund was just one huge Ponzi scheme.Mr Madoff used to send out statements to investors, showing details of companies he had invested in on their behalf and the relevant prices.

However, one statement seen by Reuters is said to show an alleged investment in Fidelity's Spartan Fund, something which Fidelity, the world's largest fund manager, has said it has no record of.

As each revelation comes out about this story is just gets more and more bizarre. He didn't even trade and no one spotted this?

If he wasn't trading what on earth did his staff think he was doing? Surely they must have spotted something odd was going on?

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...comes after the detailed examination of the trading records of Mr Madoff's broker-dealer, Bernard L. Madoff Investment Securities (BLMIS).

That examination can't have been much work if there was no trading at all ;)

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The big question is, where did all the money go?

Just paying out to people who wanted to pull their funds out with the "profit" that never was?

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Guest sillybear2

So where did the money go, into Treasuries? It seems the redemptions at the ponzi returns would easily eat into that though.

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The big question is, where did all the money go?

Just paying out to people who wanted to pull their funds out with the "profit" that never was?

Basically yes. Thats how a ponzi scheme works.

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No different from Peter Hain's think tank that never thunk.

It helped pay for his Aga though:

Peter-and-Liz-infront-of-Ag.jpg

"At first I was a bit sceptical about the Aga. I thought it was a great big lump. But now I actually think it's fantastic. We found food cooked on the electric cooker tasted very second class."

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Guest sillybear2
It helped pay for his Aga though:

Peter-and-Liz-infront-of-Ag.jpg

"At first I was a bit sceptical about the Aga. I thought it was a great big lump. But now I actually think it's fantastic. We found food cooked on the electric cooker tasted very second class."

Yes, non-Aga food is very prole like and not befitting an accomplished socialist that has been fleecing the tax payer for over a decade. However, his tree hugger friends will not be pleased.

As for the think tank, who'd have thought?

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Guest sillybear2
I like the way the fund is described as 'Exclusive'.

It creates an air of mystique and exclusivity, like being invited to a 'secret club' that's in the know of which you can tell nobody about, I'm sure Inside Track et al operated along the same lines, it helps keep it out of the spotlight too.

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It helped pay for his Aga though:

Peter-and-Liz-infront-of-Ag.jpg

"At first I was a bit sceptical about the Aga. I thought it was a great big lump. But now I actually think it's fantastic. We found food cooked on the electric cooker tasted very second class."

Gotta luv him, haven't you. And he buys his 'second class' food at Tesco - for a donation.

His Aga cookers could have been built by Remploy workers - the disabled - except that Hain sold off the Remploy factories and any chance of employment for the seriously disabled.

Iain Dale - hardly an agent provocateur - noted at the time that our 'Electoral Commission' costs more taxpayer money to run than any UK political party. All to find people like Hain guilty of 'no wrongdoing'.

I could think of a good use of an Aga oven.

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http://www.telegraph.co.uk/finance/finance...ver-traded.html

As each revelation comes out about this story is just gets more and more bizarre. He didn't even trade and no one spotted this?

If he wasn't trading what on earth did his staff think he was doing? Surely they must have spotted something odd was going on?

Ah, but he was ...

I think Elaine over at Culture of Life News has dug up some interesting stuff.

She looks closely at an outfit called Gibraltar Securities.

Apparently Madoff's mother was de-listed by the SEC after running some dodgy brokering operation in the early 1960s (on behalf of Madoff Snr or the mob ...), but it might still be going, laundering and what-not for Madoff Jnr - could explain where his trades were at perhaps?

The media ain't on to this yet ...

http://emsnews.wordpress.com/2009/01/17/al...bles/#more-1058

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  • 284 Brexit, House prices and Summer 2020

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      • down 5% +
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      • Even
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      • up 5%



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