mises
Joined: 05 Nov 2007
Location: retired
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 Posted: Fri Feb 06, 2009 6:13 pm Post subject: Madoff and the Russian mob |
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This story is getting really interesting.
Madoff seems to have either been a proxy for the Russian mob in the US, investing their money (maybe laundering?). CNBC had an interesting discussion:
http://www.cnbc.com/id/15840232?video=987308800
Which makes sense. Today I read this:
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/02/06/financial/f161919S28.DTL&type=business
| Quote: |
Federal prosecutors have charged a suspect in a $100 million mortgage fraud scheme that spanned five states after he fled the country this week from his California home.
Assistant U.S. attorneys Matt Stegman and Russell Carlberg on Friday said 27-year-old Christopher J. Warren of Sacramento had been cooperating in their investigation before he fled. They believe he left the country Monday by chartering a private jet for $156,000. |
So this dude jacked about a 100mil and then fled the country. Of course he did. Even if he has 2 million, he can set up and be under the radar in some third world country and never be caught.
So, why did Madoff confess? He had more means to disappear.
http://www.motherjones.com/mojoblog/archives/2009/02/12129_madoff_whistleblower_feared_for_life.html
| Quote: |
| Harry Markopolos is the independent financial fraud investigator, who, over a period of nine years, tracked Bernie Madoff's $50-billion Ponzi scheme, screaming to the heavens when no one would listen. Testifying this morning before the House Financial Services Committee, he took an opportunity to speak directly to the Russian mafia and other organized crime figures who lost billions when Madoff's hedge fund imploded. "I'm the good guy here!" he said, eager to have them understand that he was only protecting their investments from a financial predator. Madoff's victims in the US tended to be Jewish ("Ponzi schemes are first and foremost an affinity fraud," says Markopolos), whereas overseas he preyed on mafiosi, royal families, blue-blooded aristocrats, and the nouveaux riche. (It's interesting to note that his victims also indirectly included Iraqi refugees.) |
So the guy who warned the SEC about him seems a tad worried about how the Russian mafia will look at this.
I'll speculate.
Madoff invested money from the Russian mafia and lost it. He was unable to admit he lost their money, and the ponzy scheme began. I sure wouldn't tell a bunch of Russian gangsters their billions are now millions.
This is one of the most interesting stories in a long time, IMO. |
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