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Bernie Madoff, the author of the millionaire financial fraud, has died at the age of 82

American Bernard “Bernie” Madoff, author of the biggest financial fraud in history, has died today at the age of 82. This information was confirmed by the United States Federal Prison Agency, which has not yet assessed what caused the financier’s death.

Madoff was sentenced in 2009 to 150 years in prison for planning a $ 25 billion to $ 63 billion Ponzi project. The financier worked part-time at a detention center in North Carolina, USA.

Born in New York on April 29, 1938, Modoff opened his first company in 1960, investing $ 5,000 he had saved while working as a beach lifeguard.

Throughout his life, the financier was chairman of Nasdaq, the world’s first electronic stock exchange, and attracted companies such as Apple. Google And Cisco for the financial market.

Financial pyramid reaching over 30 thousand

Modoff’s position on Wall Street has earned him a reputation and confidence in the market, which are essential tools for his fraudulent scheme, which has killed more than 30,000 investors worldwide, leading many of them to bankruptcy.

Madoff planned this type of fraud Pyramid scheme, It only works as new investors continue to enter the system – and when investors stop entering, this function fails to make up for the promised positive returns and gaps.

While the plan was in place, Madoff did not invest a single cent of the money given to him by customers. Instead, the financier used the new investor’s resources to pay off previous customers.

The earthquake that toppled the Modof pyramid was the subprime crisis of 2007, which foreshadowed the economic crisis of 2008, when the financier was unable to cope with the demand for withdrawals from his investors.

See also  U.S. from February 2020. Crude oil stocks have fallen to a minimum.

Between the 1970s and 2000s, U.S. judicial authorities confiscated nearly $ 4 billion from Modof to compensate tens of thousands of people who lost their finances.

Earlier last year, prosecutors sought to reduce Madoff’s 150-year prison sentence, saying the financier suffered from “terminal kidney disease” and wanted to get out of jail, but that request was denied by a U.S. court.

Profit by hot chocolate in prison

In prison, according to podcast presenter journalist Steve Fishman “Ponzi Supernova” The financier, who had been in contact with Madoff at the detention center, monopolized the sale of hot chocolate.

“He bought all the Swiss Miss (hot chocolate brand) packs in the warehouse and sold them profitably in the prison yard,” Fishman said in January 2017. To the US financial news site MarketWatch.

* With information from AFP and Ansa in New York (USA)

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