Market maker Bernard L. Madoff arrested in $50B ‘giant Ponzi scheme’

Friday, December 12, 2008

Top broker and Wall Street adviser Bernard L. Madoff, aged 70, was arrested and charged by the FBI on Thursday with a single count of securities fraud, also known as stock fraud and investment fraud. He allegedly told senior employees of his firm on Wednesday that his $50 billion business “is all just one big lie” and that it was “basically, a giant Ponzi scheme (since at least 2005).” Mr. Madoff faces up to 20 years imprisonment and a fine of up to $5 million. FBI agent Theodore Cacioppi said Mr. Madoff’s investment advisory business had “deceived investors by operating a securities business in which he traded and lost investor money, and then paid certain investors purported returns on investment with the principal received from other, different investors, which resulted in investors’ losses of approximately $50 billion dollars.”

The former chairman of the Nasdaq Stock Market is also the founder and primary owner of Bernard L. Madoff Investment Securities LLC, the closely-held market-making firm he launched in 1960. The firm is one of the top market maker firms on Wall Street. He founded his family firm with an initial investment of $5,000, after attending Hofstra University Law School. He saved the money earned from a job lifeguarding at Rockaway Beach in Queens and a part time job installing underground sprinkler systems.

A force in Wall Street trading for nearly 50 years, he has been active in the National Association of Securities Dealers (NASD), a self-regulatory organization for the U.S. securities industry. His firm was one of the five most active firms in the development of the NASDAQ, having been known for “paying for order flow,” in other word paying a broker to execute a customer’s order through Madoff. He argued that the payment to the broker did not alter the price that the customer received. He ran the investment advisory as a secretive business, however.

Dan Horwitz, counsel of Mr. Madoff, in an interview, said that “he is a longstanding leader in the financial-services industry with an unblemished record; he is a person of integrity; he intends to fight to get through this unfortunate event.” Mr. Madoff was released on his own recognizance on the same day of his arrest, after his 2 sons turned him in, and posting $10 million bail secured by his Manhattan apartment. Without entering any plea, the Court set the preliminary hearing for January 12.

Madoff’s hedge fund scheme may rank among the biggest fraud in history. When former energy trading giant Enron filed for bankruptcy in 2001, one of the largest at the time, it had $63.4 billion in assets. The scheme would dwarf past Ponzis, and it would further be nearly five times the telecommunication company WorldCom fraud and bankruptcy proceedings in 2002.

The Securities and Exchange Commission filed a separate civil suit on Thursday against Bernard L. Madoff Investment Securities and its eponymous founder Mr. Madoff. It was docketed as “U.S. v. Madoff,” 08-MAG-02735, by the U.S. District Court for the Southern District of New York (Manhattan). SEC, New York associate director of enforcement, Andrew M. Calamari, asked the judge to issue seizure orders on the firm and its assets, and appoint a receiver. The SEC pleads, among others, that “it was an ongoing $50 billion swindle; our complaint alleges a stunning fraud that appears to be of epic proportions.” It further accused the defendant of “paying returns to certain investors out of the principal received from other, different investors” for years. Madoff’s hedge fund business had previously claimed to have served between 11 and 25 clients and had $17.1 billion in assets under management. But virtually all of the assets were missing.

United States District Court for the Southern District of New York Louis L. Stanton on Thursday appointed Lee Richards, a Manhattan lawyer, as the firm’s receiver. A hearing is set for Friday, for a ruling on the SEC’s petition to grant plenary powers to the receiver over the entire firm, and an absolute asset sequestration.

Doug Kass, president of hedge fund Seabreeze Partners Management said that “this is a major blow to confidence that is already shattered — anyone on the fence will probably try to take their money out.”

Thursday, August 27, 2015

Austrian police today found an estimated 20–50 decomposing corpses in an apparently abandoned lorry.

Roadworkers who spotted the vehicle, which had been there since yesterday at least, alerted police. Responding officers found it full of corpses. The lorry is on the so-called “Eastern Motorway”, the A4, close to the Hungarian border. It was on the hard shoulder between Neusiedl and Parndorf, closer to Parndorf.

The victims are thought to have suffocated. Police are seeking the driver. The Krone published an image of a non-articulated food lorry on the hard shoulder, which they report is the vehicle in question. The photo shows a pool of dark liquid on the ground beside the vehicle.

Video from a passing motorist shows at least one helicopter on-scene. The truck, which has pictures of meat on the side, shows branding for Slovakian food firm Hyza. Earlier today the company’s website sported an apparent anti-immigration graphic, which has since been removed.

Wikinews got in touch with Hyza. “We are truly sorry about [the] tragedy” they told us in a statement. They said they have checked GPS trackers on their fleet and all their vehicles remain in Slovakia. The statement says the lorry in question was one of 21 Hyza vehicles sold on last year. It was then sold again and exported to Hungary, where it is now registered. Hyza told us the new owners have not changed the branding on the vehicle. According to the Bild newspaper, Agrofert — the parent company of Hyza — said in a statement the new owners were required to do so.

Hyza says they will “actively cooperate with Slovak police”, and “express [their] sincere condolences to the bereaved families.”

Interior Minister Johanna Mikl-Leitner called it “a dark day” and called for European Union-wide measures to protect immigrant refugees and tackle human traffickers. Neighbouring Hungary is constructing a border fence across its entire frontier with Serbia. Yesterday alone saw a record 3,241 attempts to enter Hungary illegally, according to authorities there.

Conflict in Syria and other parts of the world has led refugees to Europe. Once inside, they can move freely inside the Schengen Area, which covers most of the EU.

Austrian police earlier this week arrested three motorists suspected of people smuggling. One driver is accused of moving 34 people, ten of them children, into Austria from Serbia. The group were left by the roadside near Bruck an der Leitha and reported struggling to breathe in the van.

Wednesday, July 18, 2018

On Wednesday, the Indian Supreme Court declared that preventing women of age 10–50 from entering the Sabarimala Temple in Kerala was “arbitrary” and unconstitutional.

The Supreme Court began on Tuesday the hearing for the public interest litigation filed by petitioners including the Indian Young Lawyers Association. A panel of five judges — Justice DY Chandrachud, Justice RF Nariman, Justice AM Khanwilkar, Justice Indu Malhotra, and the Chief Justice of India Dipak Misra — heard the case of traditional prohibition of the entry to the temple based on a woman’s age.

For centuries, women within the age range when females generally have monthly menstrual cycles were prevented from entering the Lord Ayyappan’s temple. Ayyappan was considered celibate. Earlier this year, the Travancore Devaswom Board made it compulsory for women to produce an age proof in order to enter the temple. Ravi Prakash Gupta, one of the representatives of the petitioners, said, “Mere sight of a woman does not affect anyone’s celibacy if one has take[n] the oath of it, otherwise, such oath has no meaning.” Menstruation has been considered taboo in Indian society, and women were barred from entering the kitchen or a temple during the menstruation cycle.

A number of fundamental rights, mentioned in the Indian Constitution; including the right against discrimination on the basis of gender or sex, per Article 15; right to freedom of practice of any religion per Article 25; and abolishment of untouchability in Article 17; were considered in this case.

Citing Article 25 (1) of the Indian constitution, Justice DY Chandrachud said, “All persons are equally entitled to freedom of conscience and the right freely to profess, practice and propagate religion.” Chandrachud went on to say, “This means your right as a woman to pray is not dependent on a legislation. It is a constitutional right. Nobody has an exclusionary right of entry to a temple”.

Chief Justice Dipak Misra said, “On what basis do you deny the entry. It is against the Constitutional mandate. Once you open it for public, anybody can go.” Misra also said, “In a public place of worship, a woman can enter, where a man can go. What applies to a man, applies to a woman.”

Saying the state government is “bound to obey” the Supreme Court’s verdict, Kerala’s Minister K Surendran said, “The state government’s stand is that women should be allowed to offer prayers in Sabarimala Temple […] Devaswom board now has the same opinion as that of government.”

Friday, June 22, 2007

Buffalo, New York —A three alarm fire at a house owned by John and Evelyn Bencinich, two of the initiators of a lawsuit filed against the Elmwood Village Hotel proposal in Buffalo, required firefighters to rescue eight cats and two dogs in Buffalo, New York today.

At about 8:30 (eastern time) firefighters were called to the home on 48 Granger Place to put out a fire that had started in the basement. It quickly spread to the first floor where the main bathroom was destroyed. The fire did not spread to the second floor or attic.

Initial calls said that many animals were inside the house and firefighters quickly worked to rescue all the cats and dogs. At least one cat and one dog had to receive CPR and oxygen, but both are reported to be in stable condition. At least 3 cats are unaccounted for, but after a search of the house, the cats were not believed to have been inside at the time the fire started.

One elderly woman, Anna Bencinich, the mother of Evelyn, was rescued by neighbors who helped her from the burning house.

“There was smoke all over the house. The fire started in the basement and spread to a small portion of the first floor. Two firefighters were injured while fighting the fire and were transported to Erie County Medical Center,” said Division Fire Chief Thomas Ashe who also said that sections of the kitchen wall at the back of the house had to be torn out to stop the fire from spreading through the walls.

One firefighter is being treated for bite injuries to his face that he received while attempting to rescue a dog. The other firefighter was treated for injuries he received to his hand, which was believed to have been caused by glass or a cat scratching him. The names of the injured firefighters are not known. The injuries are said to not be life threatening.

According to witness reports, the home owners had a new water heater installed just last week, but it is not known if the fire was caused by the heater.

“We believe the fire was caused by an electrical (malfunction). An investigation is being conducted,” said Battalion Chief Joe Fahey who also added that they did not believe arson was the cause.

Friday, January 12, 2007

The iPhone only made its appearance as a prototype and there have been controversies aroused.

The dispute has come up between the manufacturer of the iPhone (which was resented on Wednesday for the first time) – Apple Inc. – and a leader in network and communication systems, based in San Jose – Cisco. The company claims to possess the trademark for iPhone, and moreover, that it sells devices under the same brand through one of its divisions.

This became the reason for Cisco to file a lawsuit against Apple Inc. so that the latter would stop selling the device.

Cisco states that it has received the trademark in 2000, when the company overtook Infogear Technology Corp., which took place in 1996.

The Vice President and general counsel of the company, Mark Chandler, explained that there was no doubt about the excitement of the new device from Apple, but they should not use a trademark, which belongs to Cisco.

The iPhone developed by Cisco is a device which allows users to make phone calls over the voice over Internet protocol (VoIP).

Monday, February 26, 2007

Canadian Astral Media Inc. will buy out Standard Radio Inc., which runs many radio stations in Canada. Standard Radio Inc. is the largest privately owned multimedia company in Canada.

Montreal based Astral Media Inc. will buy all of the assets from Standard Radio Inc. for about CAN$1.2-billion. Standard Radio Inc.’s 52 radio stations, and Astral’s 29, will be brought together by Astral Media Inc. This will give Astral 81 radio stations in total. This makes Astral the largest radio operator in Canada of FM and AM radio.

“With the acquisition of Standard Radio, Astral Media will not only be acquiring the best performing radio stations in the country, we will at the same time acquire a company with similar values and culture. said Ian Greenberg, President and CEO of Astral Media.

“Over the past four decades the Slaight family has built a remarkable collection of strong radio brands and has contributed meaningfully in shaping the Canadian radio industry as we know it today. We are delighted with the prospect of welcoming Standard Radio’s employees into our team.”

Gary Slaight, President and CEO of Standard Radio also commented on the deal.

“We are looking forward to becoming a part of the Astral Media family,” said Gary Slaight, President and CEO of Standard Radio. “We are pleased to see our legacy live on with a company such as Astral that has such a strong track record and commitment to its employees and to the Canadian radio and television industries.”

All of Astral’s radio stations are run in Quebec and Atlantic Canada and it also runs various television stations across Canada. Astral also has two french channels that broadcast on Sirius satellite radio Canada.

The company hopes to finalize the deal in or before April.

Thursday, June 23, 2011

Retired West Virginia engineer Lowell Jackson “Jack” Fellure won the presidential nomination of the Prohibition Party yesterday at the party’s National Convention in Cullman, Alabama. He won on the second ballot, defeating Thompson Township tax accessor James Hedges of Pennsylvania, who initially ran unopposed. Party Chairman Toby Davis of Mississippi received the vice presidential nomination.

The Prohibition Party is the third oldest existing political party in the United States, having been established in 1869. It reached its height of popularity during the late 19th century. As its name suggests, the party heavily supported the Eighteenth Amendment to the United States Constitution, which banned the sale of alcohol, and resulted in the US period known as Prohibition (1919–33). The party has declined since the repeal of Prohibition in 1933, but has continued to nominate candidates for the presidential election.

Fellure, 79, has run for president in every election since 1988, though usually as a Republican. This run marks his first as a member of the Prohibition Party. On his campaign website, he cites the Authorized 1611 King James Bible as his presidential platform, and calls for the teaching of the Bible in public schools, criminalization of homosexuality, and the elimination of abortion, the liquor industry and pornography. On economics, he supports reducing taxes and balancing the federal budget.

Hedges, the first Prohibition Party member elected to public office since 1959, announced his campaign in February 2010, and was the only candidate until last month. According to Vice Chairman June Griffin: “While Jim has contributed valuable resources to this Party…his positions regarding Environmentalism and passivity toward war forced me to vote for Jack Fellure. As well, his insistence on a moratorium on the building of nuclear plants caused much unrest among the membership. Yet he prevailed to install this plank.”

The ten voting Prohibition Party convention delegates and a few guests met for the National Convention, which began on Monday at the Holiday Inn Express in Cullman. Tuesday featured a short greeting from Cullman Mayor Max Townson, followed by addresses from Libertarian consultant Stephen P. Gordon, Ballot Access News publisher Richard Winger, and Eunie Smith of the Eagle Forum.

Gordon, who previously worked as the e-Campaign manager for the 2008 Bob Barr presidential campaign, jokingly commented that his speech “stunk”. He opened his address with the joke that “the way to pick out the libertarian at a Prohibition Party function is that I’m the one wearing the Jerry Garcia tie.” He discussed how third party candidates could utilize new media to their advantage, but avoided any ideological topics.

Winger, an expert on election law, discussed ballot access and the history of the Prohibition Party. He notably explained how the party had cost the Republicans presidential victories in the elections of 1884 and 1916, which forestalled the passage of the Eighteenth Amendment by Republicans, who wanted to do away with the alcohol issue. Gordon later commented that Winger’s speech was well-received by the audience.

After Winger’s speech, the convention broke for lunch. Afterwards, Smith, the widow of former Congressman Albert L. Smith, Jr., focused on immigration and education in her address. When asked about the Eagle Forum’s participation in the fight against alcohol, she commented that the group was focused on more pressing issues such as gambling.

After the nomination, some party members traveled to the grave of Sidney Catts in Florida. Catts, who died in 1936, was the first and only state governor elected from the Prohibition Party.

The party will now begin ballot access drives in Louisiana, Mississippi, Florida, New Jersey, Utah, Colorado, Tennessee and Arkansas. In 2008, the late Gene Amondson appeared on the ballot in Colorado, Florida and Louisiana and picked up a total of 653 votes.

Sunday, April 12, 2015

In Washington D.C., the U.S. Capitol building has reopened after shots were fired in front of it. For safety, no entry or exit was permitted from the building after a man committed suicide just before 2pm local time yesterday. The lockdown lasted until around 3:50pm while members of the bomb squad investigated the man’s backpack, suitcase, and the surrounding area.

A witness estimated 60 other persons were in the area at the time of death. Witnesses reported the man had a sign of protest about taxation and social justice.

The shooting occurred during the annual Cherry Blossom Festival, a busy Washington tourist season. Congress was not in session during the attack but are returning from recess tomorrow.

Monday, August 30, 2010

A deal between Sunshine Coast Grammar School headmaster Nigel Fairbairn and the Independent Education Union of Australia has ended a week of uncertainty for 22 of the Queensland, Australia school’s staff.

Last week Wikinews obtained a list of 22 middle management teaching staff allegedly made redundant, or laid off due to restructuring. The restructuring is, apparently, designed to get teachers back into the classroom.

During the week, staff, students, alumni and parents had accused the headmaster of being dishonest and not “tak[ing] a single question” on the issue.

“At 10am there were 21 teachers with big question marks over their employment but by 1pm they had the assurance they would be able to apply for new positions before external applicants,” union secretary Terry Burke said. “Mr Fairbairn said it was clearly the school’s preference to continue the employment of existing staff. It is our view the existing staff are more than capable of taking on the new positions.”

Sunshine Coast Grammar is a private Christian school approximately 95 km (60 miles) north of the state capital, Brisbane.

Teachers at Sunshine Coast Grammar school have told the Sunshine Coast Daily that they received no warning of any pending redundancies. Independent Education Union of Australia representative and school careers counselor Maria Campanini said “teacher morale is very low and people are very disappointed and disillusioned”.

Ms Campanini said that staff were saddened by the handling of the situation by headmaster Nigel Fairbairn. “We got an email announcing a meeting and I thought it would just provide some feedback about the review,” Ms Campanini said. “But the 21 teachers whose jobs were directly affected were herded into a room, Mr Fairbairn read out a prepared statement, turned on his heel and left. He didn’t take a single question. We were just left sitting there in shock.”

An anonymous staff member told the Sunshine Coast Daily that, “Some teachers, who rely on the income and whose positions were abolished, were very distraught and they had to go to class. It appears we’re not valued in the school community, not to be even asked our opinion as to what might be the best outcome, to try and make it work.”

According to Ms Campanini, one of the teachers being made redundant is 30 weeks pregnant with another returning to work after maternity leave. “It’s really stressful for all the people involved,” Ms Campanini said. “People can understand the need for restructure when it’s explained, but we’re none the wiser.”

“When it all happened on Friday, it was morning tea time and a lot of us had to go back in the classroom and teach all afternoon,” the anonymous staff member said.

Parents have accused Fairbairn of constantly changing his version of events, with one telling the Sunshine Coast Daily that, “The school board does not have independent parents on the board, which makes no sense at all. From what I have gathered, Mr Fairbairn is not interested in having parents involved in the decision-making processes.”

“Mr Fairbairn is trying to go into damage control and his story keeps changing,” said Julie Hopkins, another Grammar parent. “He’s told parents this restructure was not financially motivated but has told teachers the complete opposite thing. This is it. The gloves are off.”

Wikinews obtained a list of middle management staff allegedly made redundant, or laid off due to restructuring, by the Queensland, Australia school. Sources say that those staff have been told that they can apply for new positions that have opened up.

The list, published on the SCGS alumni Facebook page, contains the names of twenty-two staff members. Seventeen positions are reportedly being opened up, eight of which seem to significantly overlap the old ones.

The changes are, apparently, designed to get teachers back into the classroom. “We are not cutting subject choices and extracurricular activities, but retaining a student-driven curriculum that integrates with the new Australian Curriculum, in keeping with our commitment to teaching and learning opportunities,” said headmaster Nigel Fairbairn.

Wikinews understands that Fairbairn attracted criticism when he was a head teacher in Christchurch, New Zealand, where a former student claimed that Fairbairn “replaced the open and welcoming culture … with the tyrannical and oppressive one.” Fairbairn refused to comment on the criticism.

Fairbairn’s statement came under attack from 2009 graduates who, in a open letter posted on Facebook, said, “It is also hugely hypocritical to attack these teachers for not spending enough time in the classroom, when from firsthand experience the only time Mr. Nigel Fairbairn was ever sighted was during assembly (which he mysteriously stopped attending), never mind in the classroom, therefore, it is honestly astounding that he could make such unjust and incorrect statements.”

They also expressed embarrassment “to be associated with the name ‘Sunshine Coast Grammar School’ while you are at the head of the great community which Grammar once was.”

Four of the affected teachers “were the backbone of the school when [controversy surrounded founding headmaster John Burgess] happened,” a former prefect (student leader) said. “They got it through that crisis and this is the thanks they get.”

“People are angry and shocked,” they continued. “I am aware of at least 10 families who have said they will pull their children out of the school – it’s that bad.”

The student body has not ruled out protesting the schools plans. “It’s getting to that stage,” the former prefect said. “People are trying to look at it in an intelligent way but there is so much anger out there.”