Top Wall Street investment advisor arrested for $50 billion dollar investor fraud

Department of Justice makes arrest of Bernard Madoff late Thursday.

According to Wikipedia www.wikipedia.org, a Ponzi scheme is a fraudulent investment operation that involves promising or paying abnormally high returns (“profits”) to investors out of the money paid in by subsequent investors, rather than from net revenues generated by any real business. It is named after Charles Ponzi. A Ponzi scheme has similarities with a pyramid scheme though the two types of fraud are different.

December 12, 2008, New York, NY (JusticeNewsFlash.com)–Business litigation lawyers and securities fraud experts for Justice alert Wall Street may have just been hit with largest reported “Ponzi” scheme ever. Bernard L. Madoff Investment Securities LLC, a New York based securities broker-dealer, and also runs a separate investment advisory business. The founder Bernard Madoff, is accused by the U.S. Government’s Securities and Exchange Commission (SEC)of massive fraud. According to the SEC, Federal Bureau of Investigation (FBI), and Department of Justice (DOJ), the fund had over $17 billion in assets under management as of the beginning of 2008. According to regulatory filings and SEC insiders it appears virtually all of the assets of the advisory buisness are missing.

New York business litigation lawyers and securities violations attorneys suggest Americans can expect “legions” of investor suits brought under both federal and state claims by countless defrauded investors. Civil justice litigation lawsuits will most likely based on the theoryto be based on investors didn’t have all the information they were entitled to regarding the health of the firm when capital allocations were made. According to federal authorities Madoff counted several large hedge-fund firms as clients, along with some European banks. The impact of the financial devastation of Madoff’s alleged Ponzi scheme is unknown at this time. may have international ramifications with billions of dollars lost.

New York business litigation and securities fraud attorneys foresee high-net-worth and pension-fund investors launching a mass of investor lawsuits on the federal and state level against Bernard L. Madoff Investment Securities, LLC. The Honorable Louis L. Stanton, Federal Judge in the United States District Court for the Southern District of New York, has appointed Lee S. Richards of the law firm Richards Kibbe & Orbe LLP receiver over the assets and accounts of Bernard L. Madoff Investment Securities LLC (“BMIS”). To view the order go to www.madoff.com or contact the Receiver at the following number 214-647-7511

JNF Reporter for JusticeNewsFlash.com specializing in securities fraud news.

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About the Author Justice Seeker

Heather L. Ryan, R.N., C.L.N.C- Heather Ryan is a Certified Legal Nurse Consultant with 15 years of experience in the health care industry. Her expertise in reviewing medical records and assisting lawyers with the determination as to whether legal action should be taken provides an invaluable asset to the newsroom. Medical-malpractice, products liability, personal injury and workers’ compensation are some of the recent areas of litigation Ms. Ryan has focused her efforts on. A member of the Florida Justice Association, Heather maintains a long list of certifications and credentials to support her areas of expertise and stays up-to-date with her clinical knowledge working as an emergency room/trauma nurse, at a Level 1, Adult/Pediatric trauma and teaching institution in South Florida.