Bernard Madoff facts for kids
Quick facts for kids
Bernie Madoff
|
|
|---|---|
US Department of Justice photograph (2009)
|
|
| Born |
Bernard Lawrence Madoff
April 29, 1938 |
| Died | April 14, 2021 (aged 82) |
| Nationality | American |
| Education | Hofstra University (1960) |
| Occupation | Former non-executive chairman of the NASDAQ |
| Employer | Bernard L. Madoff Investment Securities |
| Known for | Ponzi scheme, Chairman of NASDAQ (prior) |
| Criminal charge(s) | Securities fraud, investment advisor fraud, mail fraud, wire fraud, money laundering, false statements, perjury, making false filings with the SEC, theft from an employee benefit plan |
| Criminal penalty | 150 years imprisonment and forfeiture of US$17.179 billion |
| Spouse(s) | Ruth Madoff (m. 1959–2021) |
| Children | Mark (1964–2010) Andrew (1966-2014) |
| Parent(s) | Ralph (deceased) Sylvia (deceased) |
Bernard Lawrence "Bernie" Madoff (April 29, 1938 - April 14, 2021) was an American businessman. He was once a stockbroker and even led the NASDAQ Stock Market for a time. However, he became known for running a very large Ponzi scheme. This was the biggest financial fraud in United States history.
Contents
Madoff's Business Journey
In 1960, Bernie Madoff started his own company. It was called Bernard L. Madoff Investment Securities LLC. He began with $5,000 he saved from working as a lifeguard. He also got a loan from his father-in-law. His company helped people buy and sell penny stock, which are shares of very small companies.
Madoff's company used new computer technology. This helped them share stock prices faster. This technology later helped create the National Association of Securities Dealers Automated Quotations Stock Market, better known as Nasdaq. For many years, Madoff's company was a very important part of the Nasdaq market. It helped match buyers and sellers of stocks.
The Big Scam
Madoff's company also had a part that managed investments for people. This part of his business was not well-known. It was here that he ran his huge scam. In March 2009, Madoff admitted that he had turned his investment business into a giant Ponzi scheme.
Thousands of people lost billions of dollars because of this scheme. Madoff said he started the scam in the early 1990s. However, investigators believe it might have begun even earlier. Some think his investment business was never truly honest. The money missing from client accounts was about $65 billion. The actual money investors lost was around $18 billion. In June 2009, Madoff was sent to prison for 150 years.
How a Ponzi Scheme Works
A Ponzi scheme is a type of fraud. The person running the scheme pays old investors with money from new investors. It's like "robbing Peter to pay Paul." Madoff admitted he never actually invested his clients' money. Instead, he put it into his own bank account. When clients wanted their money back, he paid them using money from other new clients. He kept doing this to make people think their investments were growing. He wanted to keep up the idea that he was getting high returns. Eventually, he knew his scam would be discovered.
Bernie Madoff's Life
Bernie Madoff was from a Jewish family. He was married to Ruth Madoff. They had two sons. Sadly, both of his sons passed away before him. His elder son died in 2010, and his younger son died in 2014.
His Passing
Bernie Madoff died on April 14, 2021. He was 82 years old.
Images for kids
-
FCI Butner Medium, where Madoff was held.
See also
In Spanish: Bernard Madoff para niños
