Bloomberg – Madoff Confessed $50 Billion Fraud Before FBI Arrest

By Ron • December 14th, 2008

Madoff Confessed $50 Billion Fraud Before FBI Arrest

Dec. 12 (Bloomberg) — Bernard Madoff confessed to two sons this week that his investment advisory business was “a giant Ponzi scheme” that cost clients $50 billion before two FBI agents showed up yesterday morning at his Manhattan apartment.

“We’re here to find out if there’s an innocent explanation,” Agent Theodore Cacioppi told Madoff, who founded Bernard L. Madoff Investment Securities LLC and was once chairman of the Nasdaq Stock Market.

“There is no innocent explanation,” Madoff, 70, told the agents, saying he traded and lost money for institutional clients. He said he “paid investors with money that wasn’t there” and expected to go to jail. With that, agents arrested Madoff, according to an FBI complaint that provided a timeline.

Read the complete story on Bloomberg here

http://www.bloomberg.com/apps/news?pid=20601087&sid=a3uKf5P1lFmg&refer=home

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